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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 (1818)	2/28/1998 2:21:00 PM
From: Harry_Behemoth	Read Replies (1) \| Respond to of 2841

So POTENTIALLY we may see $2 THIS year if DBCO contributes somewhat to the bottom line (assuming of course that the deal goes thru)? That would give us a share price of $22 at current PE, which by all sensible measures is WAY too low. I don't understand at all DBCO's current stock price. I find Eco's offer particularly satisfying. If DBCO is truly worth $3/share or more, it should impact Eco's bottom line sooner rather than later, hence we should see > $15/share reasonably soon. Then DBCO shareholders can reap their 50% (or more if Eco share price exceeds $15) relatively quickly. In this case Eco would probably buy the paper back. If DBCO's problems require more time to cure, DBCO shareholders may have to wait to see their $3. McGinnis seems to have gone to great lengths to minimize the number of new shares to issue. Management watching out for shareholders...

To: david james who wrote (1818)	2/28/1998 4:57:00 PM
From: Chien Li	Read Replies (1) \| Respond to of 2841

DBCO's tax loss carried forward is on page F19 of the 10K (in thousands): At September 30, 1997, the Company had unused net operating losses carried forward for income tax purposes which expire as follows: UNITED STATES CANADA FEDERAL FEDERAL $ $ (CDN) 1998 7,826 2005 160 1999 1,746 2006 1,298 2000 5,426 2007 3,541 2001 20,449 2008 1,491 2002 53,639 2011 1,657 2003 14,450 2012 6,256 2004 21,562 -------------------------------------------------- 14,403 125,098 The benefit of these losses has been partly recognized in the Company's books. For financial reporting purposes, a valuation allowance of $31,888 ($20,403 in 1996) has been recognized to offset the deferred tax assets relating to the net operating losses carried forward.