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

To: Popiye who wrote (1418)	4/17/1998 8:43:00 PM
From: Eric G. Erpenbeck	Respond to of 4715

LTGL Investors, First of all Howard made me crack up on his statement about crawling.. It was nice humor to add to our losses. I understand that reverse splits are not favorable or liked, but it might work out if Earning are there. Also you need to realize at least as I understand it, I don't think they can issue more shares above the authorized amount (of 100M), without a re-vote. Hence 13M is the max I can see at this point. The stock price has dropped because of dilution. I have sent many message to the CEO and have complained about this back when we were at 14M shares and recommended back then to consider low interest loans instead of hurting short term value. Spencer's reply is always the same, Dear sir, a company is not made overnight, we are doing well, etc.... They are real, but IMO opinion they will have too either buy back shares or do a reverse split. Based on what we have seen to date I am guessing the reverse split. I have asked Spencer 100 times and he will not respond to it in writing!! The only way the reverse split will work and it might (not likely from the norm however) is the following example (only an example): (1) 100M shares outstanding let say in 3 months from now (certainly at current rate). LTGL continues dilution. (2) Earnings increase, new deals are obtained profit margin increase significant and they have done much better in the past after the 1st quarter. Hence lets guess at Net income per quarter 46K, 76K, 120K, 158 K. Total NI for the year is 400 K and around 4.5M sales. Spencer will delay release of next year end results and do a reverse split. Once complete with reverse he will announce reverse split with year end results. (3)EPS = 400,000/100,000,000 = almost 0. This is why he will have to do a reverse split. Lets say he reverse splits at 10 to 1 and the stock price is 7 cents at that time (8 months from now). The outstanding shares go down to 10,000,000 shares (ie reducing float and outstanding shares), and stock price will concurrently go to 70 cents. EPS are now = 400,000/10,000,000 = .04 or cent per share. PE ratio is .70/.04 = 17.5. This is not that outrageous of a PE ratio but possible a bit high for a non tech company... The new stock price of 70 cents would show all investors that the stock price would not be to overvalued at 70 cents with only 10,000,000 shares outstanding. Hence increased future earnings will then support even a higher price and they will finally be able to obtain listing. This assumes they can make a NI of 400K which is probably closer to reality if not high based on first quarter results. This assumes they do increase sales in upcoming quarters significantly (THEY HAVE TO BE DOING SOMETHING WITH ALL THAT CASH, over $2.5M since January). This is why I believe LTGL will get their products on the shelves of some big companies.. Otherwise the share dilution really make no sence unless audited results revealed a serious accounting mistake on past earnings. The only other option would be for them to buy back 90,000,000 shares at lets say a stock price of .07 or $6.3M, and I don't see this happening. Hence I believe the above scenario is the only long term prospect I can see. This is of course only my opinions and I own a significant holding in LTGL stock. I want it to do well but I think it will take patience and I think LTGL has to obtain large customers as hoped. This is only a penny stock and at least for now I don't feel concerned at all about them going bankrupt like I might with many other penny stocks. Hence I continue to hold my shares and ignore my paper loss for the day the CEO makes right with his loyal shareholders, and my risk to reward comes as expected and deserved. Eric

To: Popiye who wrote (1418)	4/17/1998 8:46:00 PM
From: Eric G. Erpenbeck	Read Replies (1) \| Respond to of 4715

LTGL Investors, First of all Howard made me crack up on his statement about crawling.. It was nice humor to add to our losses. I understand that reverse splits are not favorable or liked, but it might work out if Earning are there. Also you need to realize at least as I understand it, I don't think they can issue more shares above the authorized amount (of 100M), without a re-vote. Hence 13M is the max I can see at this point. The stock price has dropped because of dilution. I have sent many message to the CEO and have complained about this back when we were at 14M shares and recommended back then to consider low interest loans instead of hurting short term value. Spencer's reply is always the same, Dear sir, a company is not made overnight, we are doing well, etc.... They are real, but IMO opinion they will have too either buy back shares or do a reverse split. Based on what we have seen to date I am guessing the reverse split. I have asked Spencer 100 times and he will not respond to it in writing!! The only way the reverse split will work and it might (not likely from the norm however) is the following example (only an example): (1) 100M shares outstanding let say in 3 months from now (certainly at current rate). LTGL continues dilution. (2) Earnings increase, new deals are obtained profit margin increase significant and they have done much better in the past after the 1st quarter. Hence lets guess at Net income per quarter 46K, 76K, 120K, 158 K. Total NI for the year is 400 K and around 4.5M sales. Spencer will delay release of next year end results and do a reverse split. Once complete with reverse he will anounce reverse split with year end results. (3)EPS = 400,000/100,000,000 = almost 0. This is why he will have to do a reverse split. Lets say he reverse splits at 10 to 1 and the stock price is 7 cents at that time (8 months from now). The outstanding shares go down to 10,000,000 shares (ie reducing float and outstanding shares), and stock price will concurrently go to 70 cents. EPS are now = 400,000/10,000,000 = .04 or cent per share. PE ratio is .70/.04 = 17.5. This is not that outrageous of a PE ratio but possible a bit high for a non tech company... The new stock price of 70 cents would show all investors that the stock price would not be to overvalued at 70 cents with only 10,000,000 shares outstanding. Hence increased future earnings will then support even a higher price and they will finally be able to obtain listing. Remember each shareholder will also have to give up 10 shares of their stock for 1 but the stock price will be 10 times higher. This assumes they can make a NI of 400K which is probably closer to reality if not high based on first quarter results. This assumes they do increase sales in upcoming quarters significantly (THEY HAVE TO BE DOING SOMETHING WITH ALL THAT CASH, over $2.5M since January). This is why I believe LTGL will get their products on the shelves of some big companies.. Otherwise the share dilution really make no sence unless audited results revealed a serious accounting mistake on past earnings. The only other option would be for them to buy back 90,000,000 shares at lets say a stock price of .07 or $6.3M, and I don't see this happening. Hence I believe the above scenario is the only long term prospect I can see. This is of course only my opinions and I own a significant holding in LTGL stock. I want it to do well but I think it will take patience and I think LTGL has to obtain large customers as hoped. This is only a penny stock and at least for now I don't feel concerned at all about them going bankrupt like I might with many other penny stocks. Hence I continue to hold my shares and ignore my paper loss for the day the CEO makes right with his loyal shareholders. Eric