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Microcap & Penny Stocks : AmeriResource Technologies (ARET) -- Ignore unavailable to you. Want to Upgrade?

To: Gobe who wrote (1152)	8/3/1998 3:15:00 AM
From: Mr. Jens Tingleff	Respond to of 7609

It sure does - I made the calculation in a previous post. FAMC alone bounces for a shareprice of 2.2 cent when using PE10, prereq of course that all other subs are balancing. Looking at all things going on I do believe that net is now to be over 2mio - = 0.823 cent/share = shareprice 8.23 cent at PE 10. The difficult one to assess is the TCC resort in Manitoba - As taking 40%. Of course the assets and thereby shareholders equity will increase. But there's probably taxation rules to consider when valuating what goes to assets and what's to be put into P/L. To all of the above I'll add: This is all upside - There will be downside as well - and further upside we do not know about yet. Kr Jens

To: Gobe who wrote (1152)	8/3/1998 4:25:00 AM
From: Mr. Jens Tingleff	Read Replies (1) \| Respond to of 7609

Yet another angle on issuing new shares: If we as investors want to support the company in increasing equity. The way to do it is to hold on to the shares as much as individually possible. It's much more fun to acquire new business or getting rid of debts by issuing when share-price is 20 than when it's 2. An example: How to gain 1 mio shareholders equity at an incredible low PE. Say I owe 1 mio $ - I pay this 1 mio by issuing shares. That is fair and square it is actually equal to obtaining shareholders equity at PE=1 alone for the shares issued. If I do it at a shareprice of 20 cent(issuing 5 mio shares). Then I'll create a good firm basis there at 20 cent. If I have to do it at 2 cents (issuing 50mio shares) - Then the one mio better equity will be diluted with every step upwards the share price goes (but not at all as much as you might think). Now calculating on all shares after issuing: Getting 1mio better equity at 248mio shares(20cent) = shareholders payed average 0.403 cent per 1$ better equity. (equal to 0.004 PE) Getting 1mio better equity at 293mio shares(2 cent) = shareholders payed average 0.341 cent per 1$ better equity. (equal to 0.0034 PE) So you see what I'm saying here is that it's actually a cheap gain one can get by issuing shares - But it is better to issue at the high price because of the base for that price will be supported (thus also enabling more acquisitions). The above is worth remembering if ARET chooses to get rid of debts premature. We know about this 1 mio due in august from the 10K - we also know that it is allowed to be extended until co is profitable. Kr Jens