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Microcap & Penny Stocks : Liteglow (LTGL) -- Ignore unavailable to you. Want to Upgrade?

To: BillQ who wrote (1097)	3/30/1998 12:42:00 PM
From: Steve	Read Replies (1) \| Respond to of 4715

The float is 46 million. Part of the discrepancy between what IR knows and what the TA knows is a problem of internal communication at Liteglow. The increase in the float may be a financing vehicle for the factory acquisition in China. This is not a bad thing if future revenues will make this dilution minimal. Now for the company to earn a penny a share net income needs to be above $780,000, twice what it is now (before unusual charges). Putting this in context of the current expansion program makes this dilution less of a problem. With deals with other major retailers selling costs will decline as volume increases. Even though margins decline with volume buyers net income will rise as volume increases past a certain point where decreased selling costs overwhelm the lower margins.