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

To: Nero who wrote (2350)	4/9/1998 4:52:00 PM
From: david james	Read Replies (3) \| Respond to of 2841

American Eco Announces Shareholder Rights Plan HOUSTON--(BUSINESS WIRE)--April 9, 1998--(TSE:ECX) (NASDAQ:ECGOF) (BERLIN:AEOGR) AMERICAN ECO CORPORATION announced the Company's Board of Directors has adopted a Shareholder Rights Plan authorizing the distribution of one Right for each common share outstanding as of April 20th, 1998. American Eco indicated that it does not know of any pending offer to acquire the Company, however the Board did not feel that the current market price for American Eco common shares reflects an appropriate value, given five years of continuing growth in revenues and earnings. Each American Eco common share issued after the record date will include one Right. The Rights will be attached to the common shares and will not be initially exercisable. Rights will become exercisable in the circumstances described in the Rights Plan, including ten days following the announcement that a person or group without prior approval from the Board of Directors has acquired, or obtained the right to acquire, beneficial ownership of 20 percent or more of the outstanding common shares, or ten days following the announcement of a takeover bid, tender offer or exchange offer. The Shareholder Rights Plan is in effect immediately and applies to acquisitions of shares after April 19th, 1998 subject to shareholder approval. In certain circumstances, the Rights may be redeemed by the Company at a price of $0.0001 per Right. If not redeemed, the Rights will expire in ten years, subject to periodic approval by shareholders. A summary of the Rights Plan will be mailed shortly to the Company's shareholders in connection with the Proxy material for the 1998 Annual and Special Meeting and is available upon request from the Company and will be filed with the appropriate regulatory agencies.

To: Nero who wrote (2350)	4/9/1998 5:13:00 PM
From: david james	Read Replies (1) \| Respond to of 2841

I think that what I find quite odd is that if they sold off MM Industra, they could probably get more than what is currently the entire market cap of MM Industra. From talking to both Halef and a couple analysts, MM Industra is expected to have revenues on the order of $60 to $70 mill this year with after-tax earnings in the range of at least $10 mill. In 1999, the revenues should be closer to $100 mill and earnings greater than $15 mill. So giving them a P/E of 20 on those earnings, (a reasonable IPO valuation), that would give MM Industra a market cap of $200 mill. That compares to Eco's current market in its entirety - of just around $175 mill. Chempower was purchased for about $55 mill. It had a book value of $20 mill. SRS I think with their setups in Saudi, France and Venezuela, and contracts in the range of $30 mill, could be sold for $30 mill. Industra Services - not sure here, but have announced contracts in the range of $30 mill at least (this needs to be checked). Would be worth seeing what their market cap was before purchased by Eco. There are about 5 other subs. Lake Charles I think has at least $10 mill in contracts. So I see a break up value of at least $300 mill - and probably closer to $350 mill. I can understand why someone might be interested in making a hostile acquisition, given that you could probably double your money in Eco pretty easily. David