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Gold/Mining/Energy : Arcon Energy (MIDL Presently) The Ultimate Sleeper -- Ignore unavailable to you. Want to Upgrade?

To: Dave Bissett who wrote (2380)	6/2/1998 7:30:00 PM
From: Dave Bissett	Read Replies (1) \| Respond to of 4142

Projections...OK, here's the "stab at it" I came up with... Assumptions: Selling price of DF-144 = 1.20/gal Pretax Margin = 13.33 % (This is based on Arcon's projection that a plant producing approx. 125milgal/yr will gross $150mil with pretax net of $20mil) Full Dilution = 43mil sh. (from Gary's posts) Tax Rate = 35% Calculator says based on these assumptions EPS = .24/100mil gal. Now, with a larger plant size I would think the margin would increase, perhaps significantly, but regardless of how many plants they build overall they'll produce X gallons/yr. at Y cost so this seems to be the best overall way to capture the potential returns. I'm no pro at this so please, flame away or correct up/down. What P/E would anyone like to suggest? DB