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: BILL L who wrote (1622)	6/17/1998 2:59:00 AM
From: Tod C	Respond to of 11684

WOW, well done Tim! Thanks for posting it Bill. Tod

To: BILL L who wrote (1622)	6/17/1998 7:07:00 AM
From: Mr. Forthright	Read Replies (1) \| Respond to of 11684

Thanks Bill now I am even more confused.

To: BILL L who wrote (1622)	6/17/1998 8:11:00 AM
From: Turboe	Respond to of 11684

<<3) I'm not so sure ME could have done a 504 and "raised millions of dollars" in a timely matter. I think most venture capitalist would rather invest in high tech. or software than in a company whose market is currently characterized by glut, low prices, and low margins.<< No VC firms will look at mining, oil, gas, or coal projects....

To: BILL L who wrote (1622)	6/17/1998 8:37:00 AM
From: sandstuff	Respond to of 11684

Thank you Tim! Your email is further confirmation as to why MTEI is way way undervalued. BTW, anybody know when the OPEC meeting starts?

To: BILL L who wrote (1622)	6/17/1998 9:20:00 AM
From: eric deaver	Respond to of 11684

Tim excellent response and DD (thanks). One thing to add re : 3) most importantly, reclamation costs - any acid water runoff (from coal mining) will be directed to a low-maintenance storage pond for evaporation/treatment and the remaining reclamation involves re-seeding the earth cuts where vegetation does not comes back naturally - low. In southern WV acid mine drainage is not a problem. Lots of limestone and low pyritic sulfur content. Therefore, reclamation costs will simply entail permitting and regrading/re-vegetation. FWIW, Eric

To: BILL L who wrote (1622)	6/17/1998 9:26:00 AM
From: Shaun	Respond to of 11684

****Must Read 1626--great job Bill! eom

To: BILL L who wrote (1622)	6/17/1998 9:38:00 AM
From: wonk	Read Replies (3) \| Respond to of 11684

Bill L: Let me respond to Tim P. points: I) In response to the "cleverly worded" press release that estimates fair market value at $ 2.85/share, wireless generated a cleverly: worded post (#1480) that I thought merited some detailed reponse: 1) the $2.85/share estimate does include G&A expenses and most-likely reclamation and taxes; 2) federal and states taxes are going to minimum because of clean fuel tax relief; and 3) most importantly, reclamation costs - any acid water runoff (from coal mining) will be directed to a low-maintenance storage pond for evaporation/treatment and the remaining reclamation involves re-seeding the earth cuts where vegetation does not comes back naturally - low. Oh really, Tim P. please provide us with some breakout of mining expense, transportation, G&A and taxes for a typical coal mining company on a percentage of gross revenue basis. Absent that your statement is just another in a long series of unsubstantiated assertions. Reviewing the second press release MTEI said net asset value of between 100-170 million for coal (no mention of taxes, G&A reclamation) 10 mill for gas ( no mention of any expenses) divided by 65 million shares ranges to $1.7 to $2.76. That puts them in their ballpark but I suggest you look at the market comparables to see profits margins on coal extraction. A start-up company, with little cash is going to immediately generate better margins than existing players? This board is like the show Family Feud; everyone clapping and saying "good answer" when someone says "Antarica" to "What is your favorite color." II) On the huge issue of why these folks paid "so much" for a reverse-merger to avoid an "up & up IPO": 1) The reverse-merger was around 0.04/share and from what I understand, the shell owners retained only about 7 million shares or less: that's about $ 300,000 (0.04 x 7M) - very reasonable considering what a investment house would charge to go public. Also, as a bonus, ICVI did have some positive accounts. Your math is amateurishly wrong. MTEI gave up 23% of the economic value of their private assets represented by the existing insider holdings of ICVI as well as the shares held by the public. How can you make such a basic mistake? At the time of the reverse-merger, the shares were valued at $0.04 each, not 2.85 because the ICVI guys from what I understand, got them immediately and ICVI was dying - so what's better, to receive 300K for the name or have nothing later ? This is wrong too. Please learn something about GAAP "generally accepted accounting principles" and how one posts assets to the books. 2) The extra dimension of time - an IPO or the process involved in going public takes 6 to 12 months and right now fuel prices are at their lowest since the mid-1980s. Since the reserve's values are based on current market price - the best time to buy the land-containing reserves is right now. In 6 months when fuel costs are higher - the reserve-rich real estate will be significantly higher too.... Pure speculation unsupported by any facts. Just yesterday a senior World Bank official said that SE Asia was slipping into depression (yes, he did say depression). If even close to true, demand will not increase and therefore there will be no upward pricing pressure. 3) I'm not so sure ME could have done a 504 and "raised millions of dollars" in a timely matter. I think most venture capitalist would rather invest in high tech. or software than in a company whose market is currently characterized by glut, low prices, and low margins. This is ridiculous. To put venture capitalists and a 504 in the same sentence is either an indication of total ignorance or a deliberate attempt to mislead. Venture capitalist generally do seed funding of start up via private placements, 504 Reg D is a public offering. How can you confuse that? Again, MTEI gave up 23% of the economic ownership for, in your theory, 6 month-12 months of lead time. Do you have any idea how much extra value the company has to add in those 6-12 months just to breakeven on what they gave up? I suggest you do a little research into discounts rates and discounted cash flow analysis. Moreover, a 504 Reg D can probably be done in 3-6 months, if not less. Furthermore, no one knows the cash position of the company. How are they going to buy the tens of millions of dollars of equipment needed to extract the mineral value? How are they going to fund the operating losses until mineral extraction begins and revenue starts to flow?? Debt? secured by what? Mineral rights which NOW have a vaporous market value of approx 32 million (65 million shares time approx 50 cents). Secondary equity offering? More dilution if straight common, if anything like a floorless convertible preferred, pure death. This is a simple question people. Where is your company going to get the CASH to operate and how will it effect the value of your shares? ***** Bill, I don't know where you comments begin or Tim Ps end but I strongly suggest that rather than listening to the principals of BB companies, do your research first into the industry and other companies who are in the same line of business. In fact, I think I'll do that. This is how the rest of the world values companies. ww