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 : EDII -- Ignore unavailable to you. Want to Upgrade?

To: CJ who wrote (1400)	6/17/1998 1:40:00 PM
From: jmt	Respond to of 2849

Additional DD.. I would be happy to contribute on a financial / valuation basis. I tried to do a valuation about a week ago based upon kens info. It does contain many assumption, however, I have no historical balance sheet of income statement. Also, if the business is fundamentally different now, historical info won't even help. But please review. Please note any of these assumptions are subject to challenge. Without more detail from george it is difficult to make projections. >>> I phoned the company and the Secretary said no financials were released to the public, and Joe Gort is no longer representing the Company. George Gutman (Growth International) is out of the office until 1:00pm. I will try him then. If anyone has these financials, please inform me. Just a couple of initial comments on kens dd. Shareholders will not receive IDES shares. The acquisition will likely be under the purchase method, where EDII would own the shares, or essentually 81% of IDES. The financial results of IDES would be consolidated into EDII books, less the 19% "Minority Interest" of RENN. EDII will likely control the Board of Directors. The only role and advantage of RENN will be strategic leadership. EDII could purchase IDES with cash or stock. The only other issue worth mentioning at this time is the current number of shares outstanding. From the info I have read, I get about 46M as of 12/31/97, plus 25M used for Acqueron, and 8M for Cinema research. This equals 79M. To put that into perspective if we assume the $5M Har-Whit 1997 net profit is not a one time event but is sustainable income, that equates to 6 cents per share. While float is a good indicator for short term movements, eventually all shares will be unrestricted and need to be considered in an Earning per share calculation. This would put the current P/E at 10x (as compared to 25x on the S&P 500. The other contributions to earning appear to be small, 180K here and there in royalties which are combined less than 1/2 cent per share. Even the Net Income projections for Pitt & Spits would contribute less than 1/2 cent per share. It appears the land deal could finance expansion without further common stock dillution, while also paying down debt and possibly repurchasing shares. Will post again if I can get some financial info.<<<< I am still waiting for more info. jmt