To: jmt who wrote (1848 ) 6/24/1998 5:55:00 AM From: ColinD Read Replies (3) | Respond to of 2849
Good post JMT Anyone that is comfortable in a Penny stock is either "inside" or a clairvoyant particularly in a non-reporting company. All we can do is assess the limited information that we have available to us and play our hunches....correct me if I am wrong but this would be true of all Pennies. I would hate to see EDII follow the same fate as MTEI, PWRT and most of the other stocks that have been hyped to death on SI and the net and then plummet faster than you can type "sell". I don't think that is what EDII is all about. The story that we have so far is that: Pitts and Spitts and it's sister company Har-Whit OTC TXBQ changed their name to EDII to reflect the growing business of Har-Whit as a supplier of metalworks to the Oil and Gas industry. We are told that both companies are profitable. EDII then acquires Brenham Oil and Gas and Texas Real Estate Enterprises Inc. As far as these companies are concerned, at this stage they are only bringing royalties to the party. We don't know if all the land that they own comes together with all the mineral rights..it is something that we need to find out. But anyway they own the land free and clear of encumbrances. Acqueren, who knows what they do other than they are the owners of NorthEastern Plastics which is another profitable company involved in cables and wiring. Cinema Research Corporation, the second largest company in the film optics industry Stateside, seems to be a good solid company with film clients like Gattaca, Star Trek, Jerry McGuire etc etc. We have been informed that they are buying into High definition TV (HDTV) one of the latest technologies and purportedly the future. Sounds good to me. Intile....well this a company with a very chequered history that was I believe been de-listed for tax evasion. This was some time ago and as far as I understand BDO Siedman (sic) who dumped them as a client during their trouble is now working for them again on their accounts. A good sign. This company is well known in "top of the range" imported tiles, marble flooring etc. Reading all the information available to me on the net etc I doubt if this company has been profitable in the past due to having to pay fines and clear outstanding tax. However the future for them looks bright, with no single customer representing more than 10% of their business and solid top line income. We have a credit line, which is either 18,000,000 or 800,000 as I agree with all that the Press release was very poorly worded. Why the hell someone doesn't call Dror and sort this one out I don't know. But anyway, they have enough for their acquisitions. Acquisitions have been made in cash and restricted stock. Now particularly in the case of the land, why would a land owner accept company stock in return for a purchase. Hmmmmmmm..If it was me I wouldn't do that unless there was a good chance of selling the stock at considerable gain at some stage of the proceedings...Positive I think. Other than this everything else is just hype....but for me this is the beginnings of a good little company that is growing through acquisitions. I don't think it is a get rich quick company but you never know do you. If there were to be a massive oil find, if there were to be massive explosion at the Weber factory or if Brenham Oil and Gas discovered the biggest crocodile find of the century and went into the shoe business...who in the hell knows. But just maybe.......... And that is what pennies are all about. The sooner this company becomes fully reporting the better. In the meantime, I am in at a good price and intend to stay with EDII until such time that I decide to sell...simple really isn't it. I believe, in my honest opinion, that there are other stocks far more worthwhile for the Hit-Squad to spend time on....as for you as an investor....we stand together and yes we do need certain questions answered...but I don't believe we will ever be truly comfortable until we sell at a massive profit. :o) ColinD