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Microcap & Penny Stocks : Rocky Mountain Int'l (OTC:RMIL former OTC:OVIS) -- Ignore unavailable to you. Want to Upgrade?

To: Pugs who wrote (21540)	11/25/1997 12:21:00 PM
From: Ditchdigger	Read Replies (1) \| Respond to of 55532

Pugs: if I were an investor in RMIL, I would be less concerned with Mork, and more concerned about the investigation of RMILs past (OVIS) and present lack of financial filings. If Mork goes down, that doesn't mean RMIL goes up. DD

To: Pugs who wrote (21540)	11/25/1997 12:41:00 PM
From: PC11	Read Replies (1) \| Respond to of 55532

Pugs: 2nd Request!! With all due respect (for the 2nd time) I see that you've posted a share value for RMIL of $6/share. I thought that we discussed this yesterday and concluded that your analysis was a bit misleading. However, I returned today to find you disseminating the same (mis)information to this thread. You directed the non-believers to "do the math". So I did. For starters, I attempted to estimate a share value based upon the P/E of the company. The price-to-earnings (P/E) ratio is based upon the simple equation: Price of stock = EPS(earnings per share) divided by Common stock O/S (fully diluted). Since RMIL does not have any earnings to add to this equation, the P/E ratio method cannot be utilized. Therefore, I concluded that we must use the book value method to estimate a share value for RMIL. The equation for book value is: Net Assets divided by Common stock O/S (fully diluted) = Book Value per share. Common stock O/S (utilizing the 10Q as of 3/31 and the merger agreement) is: 2,571,081 (outstanding as of 3/31) 6,684,750 (payable to shareholders of Rocky Mountain per merger agreement) 6,000,000 (payable 1 year from merger date per merger agreement --------- 15,255,831 (fully diluted shares outstanding as of merger date) Net assets at 3/31/97 were $907,585. Net assets created by merger ($10 million cash, $5 million debt) is $5,000,000 Net assets at merger date are $5,907,585 Now back to our equation: Net assets divided by common shares = book value per share $5,907,585 divided by 15,255,831 = 39 cents/share book value Your $6/share value has been officially determined to be 39 cents/share. Also keep in mind that I assumed that $5 million of the merger money was a "gift". If it wasn't, the book value would be considerably lower. Pugs, please retract your $6/share statement (2nd request).