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Strategies & Market Trends : Bill Wexler's Profits of DOOM -- Ignore unavailable to you. Want to Upgrade?

To: Larry McColloch who wrote (512)	3/20/1998 9:15:00 AM
From: Ploni	Respond to of 4634

Subject: ENML I haven't seen the product in the store yet, but I have seen a t.v. commercial a couple of times, which could generate sales. One was during "Waterworld" last night, though I don't know if it was a national ad, or local.

To: Larry McColloch who wrote (512)	3/20/1998 9:52:00 AM
From: Mama Bear	Respond to of 4634

Yes, I have been short ENML since 19 5/8 this time around. It is a one product company that can't advertise it's alleged benefits, charges a premium for it's products, and has large, well capitalized and diversified multi national corporations (Colgate Palmolive, Procter & Gambel {sp?}) for it's competitors. The "miracle formula" that ENML is offering was offered and passed over by these competitors, and ENML bought it for $5000 (yes, five thousand). There is no way that ENML will bring this product to market successfully without massive dilution of the current shareholder base, and that is a remote possibility. It also has a CEO who draws 1/4 million a year in salary, owns the company headquarters and leases it to the company, and sells his shares into the market periodically, including about two weeks ago. I believe that the failure of Rodman & Renshaw had a lot to do with why ENML did not pop up on a couple of fluff releases last week. R&R brought ENML public and was the "axe" in ENML market making, along with LEHM. In the past it was fairly reliable that ENML would rise 20 to 30% on such releases, if you pull up a chart, you can plainly see the dates of past releases, represented by huge single day price and volume increases, and an eventual trailing off of the price. Dr. Fox even managed to get the price up to almost 20 in 11/97 (the day I shorted this time around) by announcing that revenues and earnings would be much worse than the year ago period. The fact that ENML "couldn't get it up" on the latest releases speaks volumes to me. I have a price target of 5 or less for this position. Barb