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Gold/Mining/Energy : Trailmobile Canada TMX (formerly MII) -- Ignore unavailable to you. Want to Upgrade?

To: Wizzer who wrote (91)	7/22/1998 12:15:00 PM
From: Philip Benson	Read Replies (1) \| Respond to of 406

Scott/Wisam: Fully diluted shares o/s are closer to 36 million, but I still agree the stock looks cheap. Scott, the only Canadian manufacturer is Manac (owned by Que based Canam Manac Group). Their ops are about the same size as MII's but they sell a lot of their production in to the US. Most trailers sold in Canada are built in the US (Fruehauf, Great Dane, Stoughton, etc.). To put it in perspective, Breadner Trailers in Cambridge is a Stoughton dealer and he sells over $125 million/year!!! If MII can get its EBIT up to 5% of sales (which I would consider a minimum target given the increasing service business which generates much higher gross margins)this is going to be a great stock. FWIW Philip

To: Wizzer who wrote (91)	7/22/1998 12:29:00 PM
From: Scott Mc	Respond to of 406

Wisam, I thought there was also some outstanding warrants and/or options which Philip mentions in the next post. Re book value should be in the annual report, dont have my copy handy but I would guess its trading around book based on original offering price and cash burn in 97. Scott

To: Wizzer who wrote (91)	7/22/1998 3:25:00 PM
From: eWhartHog	Read Replies (2) \| Respond to of 406

According to the Financial Post, Mond has the second highest price/book ratio on the TSE. FP gives book value per share as one cent. canoe2.canoe.ca From the 1997 Mond annual report, the 1997 loss of $9.9 million reduced shareholders' equity to $450,020, and there is a "going concern" warning in the notes to the annual report. Earnings are more important than book value, but there seems to be considerable risk in MII if earnings falter since there is so little equity. Mond may or may not be worth buying, but investors should familiarize themselves with the financial statements to understand the risks.