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

To: Mama Bear who wrote (1896)	3/4/1998 9:32:00 AM
From: Hunter Vann	Respond to of 2841

3/8 x 9/16 pre-open, gapped south a tad. If Eco has a strong close, I'm going to nibble on some March 10's. I've got to try and find some ways to make money on this stock! Simply buying the issue has been a dead dog for me!

To: Mama Bear who wrote (1896)	3/4/1998 9:44:00 AM
From: MARK BARGER	Read Replies (1) \| Respond to of 2841

Barbara, all posters welcome on this thread. I am very, very bullish on ECGOF. We learned last fall that ECGOF is influenced by the oil service sector, and with the acquisition of DBCO will be even more so. The oil service sector is influenced by the price of oil, which is now hovering at a 10 year low. El Nino (mild winter), Asian crisis (decreased oil demand), Iraq coming back on line(increased supply) have all hammered the oil service stocks down 50% from their '97 highs. For the last 20 years, oil has averaged $20 a barrel, and very analyst will tell that it will be back to $20 within the next 12-18 months. Right now is close to a worst case scenario for the oil service stocks. Companies with great fundamentals and huge growth prospects are selling at P/E multiples of 10-20 with growth rates around 50%. ECGOF, assuming $1.20 for 1997, is selling at a P/E of less than 9, with a cool 50% growth rate. Admittedly the earnings have been boosted by a less than full tax rate. However, the CEO has stated we are looking at around $1.50 fully taxed for '98 (before adding in DBCO earnings and further tax breaks). Dell, AOL, Coke, all great companies, but all fully valued and in my opinion overvalued. All these have 50 or so analysts that follow them. ECGOF has about 5 analysts that follow them, all with strong buy ratings. These analysts aren't saying buy ECGOF for a nice 30% gain in 1998, they are saying buy it with a target price of around 25 for a 150% gain in 1997. The major players on Wall Street simply haven't found out about Eco. yet. I really think the DBCO acquisition, if made profitable, will put ECGOF on the map. I would welcome your opinion or anyone else's as to what will prevent the market from eventually valueing ECGOF with a P/E of 20, in line with the rest of this sector. If the conf. call blows up, all bets are off. But, in the past Mike has been a very compelling speaker, and has been very effective at presenting his plan for ECGOF. Thanks for any and all comments. Mark