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Microcap & Penny Stocks : EUTRO INVESTMENT GROUP EUTO (LONGS) -- Ignore unavailable to you. Want to Upgrade?

To: Ricstar who wrote (752)	12/30/1997 2:58:00 PM
From: Playin my Cards	Read Replies (2) \| Respond to of 1667

Ricstar, I will ask all 5 questions when I visit Brad next month. As to #3, #4 and #5, this is how I think they may answer based on what they have told us so far. Of course all speculation on my part but might bring in some good conversation. Message from Ricstar on Dec 30 1997 10:53AM EST 3. How large is EUTRO's workforce and how do they intend to go about "tracking down" companies that want to go public? Essentially, what is their game plan for increasing the number of companies they can take public. Per the newsletter..."Without soliciting, Eutro has been contacted weekly by companies wanting assistance. This has allowed Eutro to become selective, accepting only the firms with the most potential." 4. Stuff deleted....Unless there is some legal requirement that the shares have to be distributed, it would seem more purdent to use the shares, which I assume are assets, to better the company. Since the shares of EUTRO are trading at less than .05 a share, it concerns me that the compnay would consider distributing anything to the shareholders at this point. 4: Increase shareholder value hence EUTO share price increases & draw more long term investors by providing a dividend. Both of these would raise the value of EUTO stock which would benefit the company and the shareholders. 5. In the same light as #4, it is also my understanding that management intends to distribute dividends to preferred shareholders. Again, why is a company whose stock trades at less that .05 a share distributing assets to its shareholders. Wouldn't that money be better used in keeping the company afloat? #5: Referring to Preferred shareholders, they wanted to get shareholders to convert to Preferred shares and that was a little "Carrot" they threw in to get people to convert, along with the warrants. This also helps the company and shareholders by reducing float and gaining long term shareholders. Also keep in mind the exchange between common and preffered shares. I can't remember the ratio but if it were 20:1, the prefered shares would be worth 20*.05 = 1.00/share and the dividend would be 16 cents or 16%. Keep in mind that bringing a company public is all leg work (labor). There are no goods that you need to buy neccessarily to build a product so the margins could be very high if they are able to tune and streamline the process (ie fill-in-the-blank legal paperwork etc...) It seems that the company may have hit a cash crop in bringing small companies public. One might think that they should take the profits and hire more lawers etc and grow the business faster but I think it would be more prudent at this point to grow at a slower rate, make sure they get the process tuned in and not loose control. If this is their plan (slow sustained growth), then all that cash in the bank would do them nothing but earn 6% interest. Here they could offer the dividend and watch the stock go up who knows how much. Anyways, thanks for the GREAT questions! Keep em coming! Mike