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

To: WTMHouston who wrote (2382)	4/15/1998 7:36:00 PM
From: Peter H. Mack	Respond to of 2841

Some simple calculations... Operating margins now are at 5.6% down from 7.8% last year. This apparently is a result of problems with Chempower and the DBCO costs. If we assume $245 mil revenue for this year (as stated in backlog) and using these margins.. worst case EPS is .68 and best case is .95... trailing EPS is now at .94 instead of 1.08.. this puts us at a P/E of 9.17 which is still pretty low. Share dilution is 38% over last year. The result is the effect of poorer efficiency plus share dilution. What isn't included is the reduction of value of DBCO shares purchased for 5mil. The earnings release certainly leaves something to be desired. Now who has any optimistic spin?? Regards (:( pete