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

To: Gemini who wrote (2418)	4/24/1998 8:23:00 AM
From: david james	Respond to of 2841

I have to agree with the last couple posts. The stock could go a bit lower, and it would be painful to get a margin call any lower. But I don't think it will go much lower. We are not far over book value. Think of it this way. At Eco's current price, if just about any company in this industry were to acquire Eco now, it would likely be accretive to their earnings and reduce their P/E. We've got a market cap of about $140 mill and a backlog of around $250 mill. That gives us a price to sales ratio of under 0.6. And unlike about half the companies in the industry, we will be profitable. I also think we will be cash flow positive for the rest of the year (unless Eco tries another one of those clever "investments"). Eco has done a lot of dumb things in the last several months to really piss off some of their long term shareholders and institutions - hence the current price. They've now got to try and build some confidence again. I personally think that the 70 to 80 cent estimate they put out for the year is on the conservative side, and they will beat numbers easily. If they do, that will help. But you need to make your own risk reward decision. From what I understand, Eco is about to hire some PR firm that specializes in putting companies in front of institutional clients. Hopefully, this is a better group than the "stock-up' group they hired last year. According to IR, this will happen shortly. The shareholder meeting is at the end of May. Between now and then, I suspect Eco will make at least some attempt to demonstrate that the company is healthy and that things are looking brighter. If McGinnis has anything up their sleeve, I suspect they will play that card between now and then. Otherwise, it could be a rough meeting. David

To: Gemini who wrote (2418)	4/24/1998 9:22:00 AM
From: david james	Read Replies (1) \| Respond to of 2841

Sounds like the RMGL group is making noises as though they will be acquiring Davie at DBCO (yes, they got the name wrong in the announcement below). Looks like the last announcement though, with no confirmation that DBCO is at all interested. At $10 mill, I think even Eco would be buying - if it could indeed be bought for that price. Thursday April 23, 5:08 pm Eastern Time Company Press Release RMGL to Make Available a $100 Million Dollar Bond CALGARY, Alberta--(BUSINESS WIRE)--April 23, 1998-- RMGL(NASDAQ:RMGL - news; OTC Bulletin Board:RMGL - news) Royal Millennia Group Ltd. whose head office is in Calgary, Alberta, announces that in support of its 10 million dollar offer to acquire David Industry Inc. together with a facility for the necessary working capital has arranged to make available a $100 million dollar performance bond for the construction of the Amethyst II and III Projects and the refurbishment of the Spirit of Columbus. This bonding is subject only to a change of ownership of Davie Industries Inc. and the availability of working capital from Royal Millennia. Royal Millennia President James Carswell stated that RMGL is ready willing and able to take Davie to the next level. We have worked extensively with Davie management in an effort to ensure the continuity of Davie Shipyard. Royal Millennia Group Ltd. is listed over-the counter on the Bulletin Board of NASDAQ (NASDAQ OTC BB: RMGL - news). Contact: Royal Millennia Group Ltd., Calgary Sameer Hirji, 403/263-3993