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Gold/Mining/Energy : Canadian Oil & Gas Companies -- Ignore unavailable to you. Want to Upgrade?

To: devtan who wrote (4861)	3/24/1998 2:21:00 PM
From: Kerm Yerman	Read Replies (1) \| Respond to of 24914

Devtan / Enerchem International You're right, I've kind of let this one drift from me and am not on top of their progress. Got a little discouraged with this one after I listed the company in my speculative service listing. Soon thereafter, shares fell after company announced their acquisition wasn't going to materialize. I stayed with the company because internal growth was sufficient to move the company forward. It is of my opinion that the company is going to produce a gangbuster six month report and that is the leading contribution for share activity. It's due to be put out any day now. Word has probably leaked out to certain investors. I am looking for an internal earnings growth rate of 100% for 1998. That would establish earnings in the neighborhood of $0.36. Using a P/E multiple of 15, I think a target price of $5.40 by calendar year end is reasonable. The company will continue to pursue acquisitions to accommodate their current business interests and that could be a big plus, or bonus to my estimate target price. Watch for the 6-month report. --------------------------------------------------------------------- I extracted key comments from their last two news releases and noted them below. The company generated record earnings of $0.18 per share for the year ended August 31, 1997. With continued robust activity in the Western Canadian petroleum services sector we expect the company to report substantially improved revenues and earnings throughout fiscal 1998. First quarter financial results for the period ending November 30, 1997 will be available early January 1998 and will reflect the strongest quarterly financial performance in the company's history. Furthermore, our international operations in the Middle East and South America are slated to come on stream in early 1998 and the financial results from these operations will be reflected in our third quarter earnings. Management of the company continues to be fully committed to its existing business activities and the primary goal is to maximize shareholder value through internally generated growth. However, management will continue to seek out attractive business opportunities in the oilfield service sector which will compliment the company's existing operations. ---------------------------------------------------------------------- 1st Quarter Report Revenues were $3,955,144 versus $2,744,963 for the corresponding comparative period representing a 44% increase. Income before tax during the period increased 109% to $1,039,546 from the restated income of $496,518 for the comparative period in 1996. Net income increased 108% to $579,946 from the comparative period restated record $278,518 and earnings per share increased 100% to $0.08 from $0.04. ----------------------------------------------------------------------