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Microcap & Penny Stocks : EDII -- Ignore unavailable to you. Want to Upgrade?

To: Jim B who wrote (1213)	6/16/1998 12:57:00 AM
From: PaulB	Respond to of 2849

There has been a great deal of criticism on this thread today about diluting of shareholder equity. Let me know if I am wrong but this only happens if EPS goes down. I do not personally care how many shares are outstanding I want to know how much each share can generate in earnings. Numbers of shares is only relative if earning go down. Now with that said we need to find out what is in the treasure chest ( Land ) if we can fairly value that then we will know if we are in the money or not. Lets not ASSume that this was a bad thing. From what I have seen from this company and the DD that I have done they appear to have a fairly sharp management team . This weekend I was out at our local drag races up here in Oregon I saw one of their barbecues and I took a very hard look at It and it's quality was very high. So while the rest of the market is in a panic lets not loose our emotions and tear this thing apart. Lets act on facts and not emotions we all want the same outcome here Thanks to everyone who has shared their DD here it has all been very informative. Now lets get this thing moving forward :-) Paul

To: Jim B who wrote (1213)	6/16/1998 1:42:00 AM
From: Ken M.	Read Replies (1) \| Respond to of 2849

There is a certain person on this thread who continues to whine that we have to count restricted shares when doing a valuation on what per share stock is worth, but that just not is case in the world of the stock market. Ask anyone who does this work for a living, and they will tell u that there is so many things that can happen before the stocks become eligible, that they are not to be counted, until they become unrestricted. That would be like buying a $1000.00 savings bond then listing it under assets as wort $1000.00, which everybody knows that until it matures, that it may say $1000.00 on it, it does not become worth that till the bond matures(even with that analagy, the bond would be worth more than a restricted share of stock, because u can always cash in that bound for what u paid for it, not so with a restricted share of stock, it,s not worth nothing till it becomes unrestricted) Now this same person is going to post back, saying I don't know what I'm talking about, that they were issued therefore they have to count, when u do a tally on total shares, well nope u don't, this is why- if the company that issued them wanted them to be counted, they would issue them unrestricted. Now during the 3 to 5 years that they are restricted, EDII, gets to receive all the cash flow from all aquistions, with no payments having to be made to the comp.'s that agreed to the restricted shares. Actually a company that can get profitable busines's and land for restricted shares, show that that company is a very shrewd and smart company. It shows that EDII made one hell of a prsentation to these companys and their board of directors( including one board member from Intile Designs, who was appointed by RENN, who holds 20% of Intile), that these companys believe EDII's stock is going to be high enough that not receiving any compensation, and holding unsellable stock for a period of 3 to 5 years is worth it. Second this person also believes they probably could'nt get a bank loan to pay for these aquisitions. well guy it's plain to see that u are not a business owner. Anytime u can increase your worth and profit , without having to borrow, which in turn would cut into your profits, u are way ahead of the game. EDII is aquiring Profitable companys, and will be receiving all this influx of cash, basically for free for the next 3 to 5 years. Next point durring this 3 to 5 years, they take the net profits of this "free" money, and begin buying back shares of their company. That is the shrewd part, they take their "free" money, and begin to increase the companys holdings, and number of shares substantially, and why not, it makes a hell of alot more sence to use this money to buy back shares, than to use profits to pay on a bank loan, that I guarante you they would'nt be able to put off making loan payments for 3 to 5 years. Then as the number of shares available on the street decreases,the old supply and demand theory, u decrease the supply, and demand goes up, will kick in causing share prices to rise. This I belive was presented to the aquired companys, and they in turn agreed that the price per share of EDII will be high enough in 3 to 5 years, that the restricted share sell to EDII was a good one. Lastly EDII was able to do this with not just one company but several company's. I just can't believe that several owners of profitable million dollar company;s and the owner's of the land, would all fall for a "scam". Answer this how many out there think that if the next news to come out of EDII is a statement by EDII announcing that EDII will be implementing a stock buy back would be good news?