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Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?

To: Tony van Werkhooven who wrote (4705)	5/12/1998 11:56:00 AM
From: Cary C	Read Replies (2) \| Respond to of 29382

Tony it was briefly discussed in the conference call. As was stated earlier, there were one time expenses that were a direct result of the crash. I didn't catch all of them and if memory serves me correctly, it totaled about 300K that they listed. They also mentioned that from time to time they sell some of their helicopters. Do to the conservative accouting measures that they use, it is my understanding that they depreciate the helicopters even though they don't really lose that much value. Case in point would be the 1041k in depreciation expense that was listed. I believe most was attributed to the helicopters that they own. If you were to delete that portion then the profit dollars would have been much higher. So when they sell or get reimbursed for one it shows as income. Income that would have been there already had they not depreciated the helicopter in the first place. Even though this might be a concern to some people I think it is important to look at what is on the horizon for AIRM. Also remember to take into consideration that this was their slowest quarter and maybe slower than usual because of worse weather than normal. Assuming that this was their slowest quarter and they only did earn .06, absolute worst case scenario would be .24 for the year if that was all they did for each of the next three quarters. I think it is safe to say that Mercy expansion alone will increase that number not to mention the military contracts, pick up in Brazil royalties and normal day to day increase in business as they continue to exhibit the growth that they have shown over the last year. Being extremely conservative, I believe they will make at least .35 ( not counting money from gain on helicopters) a PE of 20 puts them conservatively at $7 by years end. That still gives you over a 50% gain in about seven months from now. I think I got this right. Open for different view points though because it is confusing. Cary