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Gold/Mining/Energy : Fantom Technologies (TSE:FTM) -- Ignore unavailable to you. Want to Upgrade?

To: Hawkeye who wrote (10)	3/17/1998 12:25:00 PM
From: Marcman	Respond to of 55

In an overvalued market, a company with valuations like this one is a real find. Good products, good sales and VERY VERY low debt, it seems like one of those companies that you have to go for. The lack of liquidity, though, means that you'll have to have a lot of patience. But if you do, I think Fantom will reward you. The brokerage firm of Brink, Hudson Lefever recommended Fantom in a recent issue of Investor's Digest. They're predicting $16 this year on the basis of a 13x forward earnings P/E. To go forward with that ratio, the company should reach $19 in 18 months or so as 1999 earnings growth is reported. I call that a buy. I don't own Fantom yet, but I am placing a "stink bid" in the mid-high $12 range. I think there's a bit of time to buy in at those prices yet (if someone gets impatient and sells at "market"). But I suspect once the next quarter earnings are released, we'll establish a higher base. The company has re-launched its direct marketing TV campaign this quarter and I imagine some initial response will be reflected in the financials. (NOTE: For FTM, this is now the third quarter 1998 - so projecting ahead to fiscal 1999 earnings is NOT a long way away.) Yes, vacuum cleaners are boring. But they are also profitable. GLTUA, Marcman

To: Hawkeye who wrote (10)	3/19/1998 2:41:00 PM
From: Marcman	Read Replies (1) \| Respond to of 55

Hawkeye, That 13.05 buy today was me. Sorry to lowball the stock, but I sensed that there would be someone out there impatient enough to let me in cheap. At 13.05, I consider this as good a buy as is available on the market. When the 3rd quarter 98 financials are out (in a month or so), I suspect some consistent upward movement will begin. In order to meet the brokerage estimates of $1.15/share earnings for fiscal 98, the company only needs to hit .30/share in each of the next two quarters. Note that Fantom already hit .31/share in the last quarter -- before the TV promotion of the Lightning was set to start. Any growth from there (and this IS a growth story) is pure bonus. I suspect (and hope) that we are going to see this company exceed the analysts' expectations. You know what that could mean. GLTUA, Marcman