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Gold/Mining/Energy : American Eco (ECGOF, ECX on Toronto exchange) -- Ignore unavailable to you. Want to Upgrade?

To: david james who wrote (1615)	2/7/1998 1:00:00 PM
From: Duncan	Read Replies (1) \| Respond to of 2841

Back on January 22nd--"DBCO Synopsis" <<Purchase Price Speculation Given the close trading alliance, the personal & investment relationships between DBCO and ECO.since August, 1997, I believe the DBCO stock price currently reflects a close assessment of ECO's January 16th offer.somewhere in the $1.75 to $2.25 per share range. The trading history makes one believe that those in the know have already taken their positions in this respective deal. With 31 million shares outstanding, it wouldn't surprise me to see a deal valued in the $54 - $70 million range with another $25 - $40 million provided through working capital financing. Just my two cents.>> So far, this assessment appears to be reasonably accurate...and fair...and that's probably why ECO remains strong...those in the know are happy with the deal price. Note--The DBCO closing prices from January 16th--initial offer date--through Febuary 6th has been been 1 7/8 to 2 1/8. That's $58-66 million in stock, plus another $25 to $40 million in working capital (a.k.a., cash). The working capital amount was a best guess amount, having reviewed DBCO's cash flow needs, their balance sheet, and the capital needed to immediately capitalize on Davie's construction projects. So...the Financial Post article/rumor identifying a $93 million price tag is certainly in the ball park. If $30 million has been put forth in cash, and $58 to $66 million will come from stock...then the total deal should fall in the $88 to $96 million dollar range...before Mike McGinnis sheds DBCO's cash flow draining / losing sub(s)...the keeps the cherry picking subs for ECO's future. Duncan