Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : MTEI - Mountain Energy - No BASHING Allowed -- Ignore unavailable to you. Want to Upgrade?

To: Tod C who wrote (1617)	6/17/1998 1:52:00 AM
From: sandstuff	Read Replies (1) \| Respond to of 11684

You do amazing work Tod, THANK YOU! sandstuff

To: Tod C who wrote (1617)	6/17/1998 2:03:00 AM
From: Lee Walsh	Read Replies (1) \| Respond to of 11684

GREAT POST TOD ..SUPER DD..If someone was hesitant about holding their investment for the long term....that post should sure calm their fears.... Lee

To: Tod C who wrote (1617)	6/17/1998 7:02:00 AM
From: Mr. Forthright	Read Replies (1) \| Respond to of 11684

Did you ask Mr. Uselton how he got to a book value of $2.85? I have tried to figure it out 50 different ways and it just does not add up.

To: Tod C who wrote (1617)	6/17/1998 7:11:00 AM
From: Sly_	Respond to of 11684

Update - MTEI just hired a guy that is an expert in satellite imaging and infrared technology. You should hear Jack light up when he talks about him. They are also in the process of hiring an in-house Investor Relations person and hopefully if all goes right will be on staff within 2 weeks Tod, thanks man. Satellite imaging is the future..... TODAY! As for the in-house IR person, This is an EXCELLENT move. I suppose certain threadsters need not apply :}} thanks again, Sly_

To: Tod C who wrote (1617)	6/17/1998 9:42:00 AM
From: wonk	Read Replies (2) \| Respond to of 11684

Tod: I'll address this to you since you seem to be the chief cheerleader. Since comparable company analysis is one of the best methods of DD, I fully expect you to place this in the front of the thread because, of course, all new investors need facts, all the facts, in order to make an informed purchase decision. You are the keeper of the DD, aren't you? Lets use Zeigler Coal Holding Company (ZEI) edgar-online.com 0 ITEM 1. BUSINESS Zeigler Coal Holding Company ("Zeigler" or the "Company"), through its subsidiaries, is one of the largest coal producers in the United States. The Company currently operates, through its subsidiaries, seven active underground and surface coal mining complexes located in five states, two east coast transloading terminals, a power marketing business, and other energy-related businesses. Coal operations accounted for 75% of the Company's total revenues and 125% of operating earnings in 1997. The Company produces primarily steam coal, with sales to electric utilities accounting for approximately 90% of its 1997 revenues from coal sales. In 1997, approximately 89% of the Company's revenues from coal sales resulted from long-term supply contracts, most of which call for prices that exceed the price at which such coal could be sold in the spot market. At December 31, 1997, the Company owned or held through leases approximately 1.2 billion tons of economically recoverable coal reserves, including .9 billion tons of low-sulfur and compliance coal. POINT 1: ZEI's 1.2 billion tons of economically recoverable coal reserves are show on its balance sheet as "land and mineral rights: total value: 673 million. Contrast that with: Mountain Energy owns and controls the mineral rights in West Virginia that contain approximately 1.98 billion cubic feet of gas and 10,000,000 tons of coal, as well as other properties that all combined, have an estimated fair market value in excess of $200,000,000 with approximately 70,000,000 shares outstanding after the acquisition. This translates to approximately $2.85 per share. ZEI has proven reserves and mineral rights for 1.2 billion tons of economically recoverable coal and a booked balance sheet value for mineral rights and proven reserves of $673 million. MTEI has 10 million tons of unproven economically recoverable coal and the spin is that they will book this at $200 million? We seem to have a difference of opinion to the tune of a factor of 120. Let me say that again: a factor of 120. It seems to me that ZEI's holdings are tremendously undervalued by itself, its auditors and the everyone who trades on its exchange or MTEI's are overvalued. Perhaps ICVI should have reverse merged into ZEI. Certainly would have been a lot more lucrative for the stockholders. ww

To: Tod C who wrote (1617)	6/17/1998 9:48:00 AM
From: wonk	Read Replies (5) \| Respond to of 11684

Tod: Let complete this: (This needs to go in your DD posting as well.) Go to this site: wsrn.com Enter ZEI in the symbol box. Then select QuickSource: Fundamentals, Ratios & Earning Lets look at ZEI's revenues and profit margins for the last two years and projected for 1998. 1996 1997 1998(proj) Rev (millions) 731 800 851 Net Income (millions) 58 59 58 Net Margin (%) 7.9 7.4 6.8 PE Ratio 10.5 8.0 8.6 Shares outstanding: 28 million. Lets run on few quick numbers on MTEI: Lets say MTEI has 10 million tons of coal and can extract it all. Lets say they can sell it for $25 a ton (I've giving them the benefit of the doubt). That would be total revenue of $250 million. Lets say they can extract it at a 10% profit margin. (Again giving them the benefit of the doubt since ZEI seems to have subsidiary businesses which are hurting the coal operation margins.) That would be total Net Income of $25 million. Lets also assume we have that income today, RIGHT NOW. Divide the 25 million net income by the 65 million shares outstanding and what is the income per share? 38 cents!!! Hey, MTEI is trading above that, its overvalued! Of course, its more overvalued than that because we don't get that TODAY. It is going to take years to generate an income stream which means the intrinsic value of the stock is even less due to the time value of money. You do know what the time value of money is, don't you? (notice how I did not use the term fair market value.) MOREOVER, I've given MTEI every benefit of the doubt based upon a market comparable. Also, we have a multi-billion dollar coal company, according to their 10-K one of the largest coal producers in the US, and they only have 28 million shares outstanding. MTEI HAS 65 million?? Now rather, than bashing a contrarian point of view, would you or anyone like to discuss, in depth, the financial analysis of this company. If you really want to know whether you are making a sound investment, I would think you and everyone would want to understand the fundamentals of the business. ww