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

To: jhild who wrote (1761)	6/17/1998 2:47:00 PM
From: Dick Murphy	Read Replies (3) \| Respond to of 11684

jhild, Are you trying to save us from ourselves or what??? I am perfectly capable of saving myself. Dick

To: jhild who wrote (1761)	6/17/1998 2:59:00 PM
From: Springer	Read Replies (1) \| Respond to of 11684

Hello All, I finally "bellied up to the bar", paid my dues and am no longer a lurker. Totally Newbie so be nice. jhild: ACI has done pretty well for itself in this low margin business( I think you have a short position on this one....good DD though; you make me think...) pcquote.marketguide.com As far as MTEI goes: I am holding long. BB:'s are all fun and games... Playing craps with one loaded die.... Springer

To: jhild who wrote (1761)	6/17/1998 3:16:00 PM
From: Lee Walsh	Read Replies (3) \| Respond to of 11684

jhild Yes, and if you check Arch Coal's 10-Q for 1997 you will see that they show NET PROFIT MARGINS OF ABOUT 14%..Not the 0% that you and the Wonkman would have us to believe.....They pay dividends equal to 1/4 th of their net PROFIT per share .....And they are also in "acqusition mode" having just finalized a deal to aquire Atlantic Richfields ARCO Coal.... Not bad for a period of time when the Energy sector is in the doldrums...huh. Energy is a MAKE OR BREAK business.....When business is GOOD...you make a fortune....When Business is bad...the going is tough......It's been pretty bad for quite a while.....and I believe the only direction we have to go from here is UP.. Just my opinion...but I believe that Mountain Energy will JV these projects with another company...and will not get into actual coal production themselves.... Lee

To: jhild who wrote (1761)	6/17/1998 10:43:00 PM
From: eric deaver	Read Replies (2) \| Respond to of 11684

I thought long and hard on this issue over dinner and getting the kids to bed (1 less than a month old so no small feat there)and I want to precursor this with the statement that I am not an accountant - just a lowly geologist - so you can trust me :). IMO, you are taking the $110,000,000 value of the coal and methane reserves out of context and trying to apply a fully loaded equation to the numbers. Look at the press release VERY carefully: "Mountain currently owns 30 separate properties in West Virginia with approximately 1,300 acres owned in fee and an additional 1,300 acres of mineral rights. Reserve estimates by the U.S. Geological Survey (''U.S.G.S.'') indicate in excess 10,000,000 tons bituminous coal. This low sulfur, low ash content, high BTU, clean burning currently sells for $25-$28 per ton. With cost of mining and transportation estimated at $11-$15 per ton, this will show a $10 per ton conservative net profit, (representing maximum cost to mine and minimum selling price), providing net asset value in excess of $100,000,000, with a potential of $170,000,000. The U.S.G.S. estimates also indicate in excess of 2 billion cubic feet of coal methane gas. This gas currently sells in excess of $3.00/MCF 1000 cubic feet. In most cases this gas is subject to an alternate fuel tax credit in excess of $3 MCF, for an estimated value of $5/MCF valued at $10,000,000." This is where the $110,000,000 net asset value came from NOT the earnings of the company nor the book value of the company. You know that those are two entirely different things. It is clearly stated here how these numbers are derived and also clearly stated that it does not include G&A nor reclamation costs. This PR was simply to give us an idea of how much these reserves may be worth not for valuing the company. Now if we want to fully load these numbers and start talking earnings, we must also start talking P/E's since stocks are valued on FUTURE earnings. The contribution to the stock price by these assets can be estimated based on the $250,000,000 sales w/ a 14% margin (seems pretty conservative based on what I read here tonight) that converts to $0.58 EPS at a pe of 5 that's an easy $2.90 stock JUST based on contributions from the 10,000,000 tons of coal. Furthermore, since we all seem to agree on the $25/ton (I use the lower value in case we can only sell at spot price - i.e., no longterm contracts)or so price for coal, the 10,000,000 tons will produce $250,000,000 of revenue. I took all the coal companies listed in this post: Message 4904297 and averaged the price/sales ratios at 0.89. Let's be even more conservative and use .75 that means the contribution to stock value represented by the 10,000,000 tons of coal alone would be $2.67. Never forget that we are ONLY looking at a conservative estimate of ONLY the coal reserves in ONLY the first 2600 acres. It has been suggested that Jack & crew (being oilmen) will go after the oil & gas first. I am here to tell you that there is a lot of gas in that part of WV. A real serious problem there is drinking water that flashes coming out of the spigot from the release of the methane and natural gas that was put into solution in the formation. LOTs of gas. This will likely help in your little cashflow problem that keeps being brought up. By and large, the infrastructure is in place in WV for expeditious gas and oil production without major capital outlay. Makes sense to me to go after that first(but I am just speculating here and have no G2 on MTEIs exploitation plans). Just can't wait for Staggs studies. FWIW, Eric