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Microcap & Penny Stocks : TNRG Tianrong Building Materials -- Ignore unavailable to you. Want to Upgrade?

To: Cheesehead who wrote (815)	3/30/1998 9:23:00 PM
From: Jack of All Trades	Read Replies (1) \| Respond to of 9824

Since we have no deal only a letter of intent. If we had a deal the dilution of stock only occurs $3.00/sh. The question is what will be the o/s at the $3.00 level.

To: Cheesehead who wrote (815)	3/30/1998 9:48:00 PM
From: Novice Bob	Respond to of 9824

Threadsters: If I could put my $0.20 cents worth in. This is an industry I currently work in. I manage some larger shopping centers, I draft purchase agreements, analyze properties based on the income approach to value several times a week. When you buy a shopping center (or any income producing property) you value it on a cash flow basis. Generally you calculate a cap rate (a blend of the financing terms and the return the investor desires on his money), a typical cap rate varies from property type to property type. Also financing (interest rates) play a major role in whether or not a property is viable. What is a typical Cap Rate for a shopping center, 10% to 14%. Also the type of tenants play a major role, how stable are they? Vacancy rates of the area, additional product in the area, population, Etc. all play a major role in placing a value on the real estate. These are all details that are not in the release. However, if you find a poorly run shopping center (and it is not brain surgery), cash flow can be down right embarrassing. If you want to get an idea how profitable ownership is, check out the ICSC convention in Vegas in May. The owners of shopping centers hold this little 3 day convention, wet bars, catered food, grand pianos playing, they go all out. They typically spend more on their sign at the convention than most people do on their house. I have worked in leasing and brokerage of income properties for 6 years, the money is in owning. Our company owns several properties, I also do the book work (small job). I see the $$$ that come in every month and the $$ that go out every month, big gap! What is more interesting, we are in the hottest commercial real estate market ever. Even stores like Best Buy are doing well. If Tnrg puts this deal together, and they are sharp people, they could be choking on cash.