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Microcap & Penny Stocks : JAWS;A P/E of 2 with 150%/yr Erngs Growth!! -- Ignore unavailable to you. Want to Upgrade?

To: John F. Poteraske who wrote (1949)	7/2/1998 11:46:00 AM
From: Bob Myers	Read Replies (1) \| Respond to of 4230

The following e-mail message was sent to me after I questioned the total number of shares and the float: > I as an investor in TGSK along with many of my > peers on the SI thread are seriously concerned > as a result of learning about an increase of over > a million shares, fully 15% of the previuos total > without a word of explanation from management or > investor relations. > As a partial owner of this company I am entitled > to an explanation which if I support I might > invest further or if I do not aggree with I might > sell my shares. > I therefore request an immediate response from > management with an expanation and justification. > > Sincerely, > Robert Myers, PE > > Mr. Myers, Thank you for your continued support in Great White Marine & Recreation, Inc. (OTC BB: TGSK). I apologize for the delay in responding to your inquiry. We have been experiencing unusually high volumes of both e-mail and phone inquiries recently concerning various rumors. Because your questions and concerns reflect those of the majority of the inquiries we are currently receiving, I have prepared a general set of answers to the most common questions in an effort to expedite the information requested to everyone. As always, if you need additional explanation or have further questions, we are always available to assist you. Great White currently has 8,363,000 shares issued and outstanding with approximately 3.3 million shares in the float (about 5 million shares are restricted under Rule 144; the earliest any of these restrictions may be removed is November 1998). Great White did conduct a private placement about a month or two ago. Mr. Colin Smith, Great White's President and CEO, said he did this because the share price had moved up and he was able to get a good deal for the Company and its shareholders. The proceeds of the private placement were used for building up inventory, expansion and general working capital. While Great White could have easily tapped a line of credit or borrowed money from any number of lending institutions, it has a long history of avoiding debt. Prior to coming public, Great White had less than $300,000 in long-term debt. Most of which was mortgages on warehouses and office buildings; items that add to shareholders' equity. While it is too early to say, it is very likely that the upcoming balance sheets for the second quarter will show sizeable gains in shareholders' equity and assets - key items for obtaining a Nasdaq listing. Near-term it may have a slight impact on earnings per share, but will have no impact on actual net earnings. Over time the lack of debt servicing should be a boon to shareholders and result in even greater earnings per share results. The question has arisen why conduct a private placement on the heels of a stock buyback? The majority of the stock repurchased by Great White was done at prices below $1.25 a share, with a considerable amount under $1. Mr. Smith said the private placement was at $1.50 a share. Simple math tells us this was a good deal for shareholders and added hard value to everyone's ownership. We have also received a number of inquiries regarding the details of the dividend. Great White issued a one-time 10-cent cash dividend to shareholders payable July 20. Many shareholders suggested why not use the dividend to buy stock in the open market and support the share price. However, at the urging of several broker groups, Great White issued the cash dividend to attract a different style of investor. This maneuver appears to be working, with new shareholders coming onboard due to the dividend and a better stabilization in share price. To get the same results with a Company buyback would be substantially more costly to the Company and, ultimately, its shareholders. In regards to rumors about Mr. Smith's buying more shares in the market, he said he has not done so yet, but is planning on using his own dividend proceeds to purchase more stock on the open market. Mr. Smith has openly made such statements on a number of occasions. Lastly, we have received a number of inquiries regarding the possibility of continued short selling. We have been monitoring a situation where there appears to be concentrated short selling coming out of Canada. It is nearly impossible to determine who would be doing this, the effect this is having on the stock, or how much extra stock has been added to the float as a result of short sales. The fact of the matter, however, is, yes we believe there has been some short selling. Notice and requests for investigation have been sent to a number of regulatory agencies and lawmakers. Whether or not any official action is ever taken, Great White will continue working to grow its business and attract like-minded shareholders in an effort to ultimately see substantially higher revenues, earnings and share valuations. I hope this helps answer your questions and concerns. Again, if you have any additional questions, please feel free to contact me. Sincerely, J. Scott Sitra Great White Investor Relations jscott@sitra.com (512) 453-3817 (512) 453-7553 fax P. O. Box 50404 Austin, Texas 78763 sitra.com