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Microcap & Penny Stocks : PanAmerican BanCorp (PABN) -- Ignore unavailable to you. Want to Upgrade?

To: Gordon Gekko who wrote (10345)	8/5/1998 3:49:00 AM
From: Gordon Gekko	Read Replies (4) \| Respond to of 43774

* Conversation With John Schmitz * I decided to call John today because I was somewhat sick and tired of receiving second hand information. The constant bashing and bickering didn't help either. I asked John around 15 to 20 questions and I started off with the Belize hot potato. I asked him what in the world is going on here. He stated that the press release was a complete shock to him and caused great concern. He couldn't comment on the reason behind the release, but did say all questions would be answered in due time. He said he made a promise to the Minister of Housing that he would not release anything till the model homes were erected. The homes should be up by August 25 and maybe by the 15th. He also mentioned that the Minister (Hubert Elrington) just recently visited him in New York. I then asked him about the blurb in the Reporter that stated PanAmerican was being investigated by the SEC. He did not know anything about an SEC investigation. He mentioned the Reporter is heavily affiliated with the PUP party and that they are known to falsify stories. The next topic was the ability to fund $10M a month in mortgages in Belize. I found this number a little optimistic since there are currently only 351 homes available in Ridge Lagoon Estates (with the potential for 1,800). He said this is only the first subdivision and that many more are planned. He will also be dealing with other housing developments. Apparently, homes are going up all over the country. In addition, the cost estimate of the homes has changed to something closer to $50K. They are adding more amenities to them. Don't expect them to have $10M a month in mortgages come September. Expect a slow buildup to $10M. He said it would probably take around 6-8 months. Status of Costa Rica. He said some of the initial agreements have fallen through. Apparently, these individuals didn't come through on their commitments. He has been contacted by other parties concerning Costa Rica. He expects significant developments in the 4th quarter of this year. I do not know if this means writing mortgages or not. Lastly, the other Latin American countries are progressing as well. Will the profits from Insider Trading be used to fund mortgages? He said no. All of the divisions of PanAmerican are independent and do not have dealings with one another. Apparently, there is some inter-divisional rivalry. He also mentioned the projections for I.T. are probably too low (this also includes the other businesses as well - conservative estimates). They will be offering a slimmed down version of the service to light traders in the near future. In addition, they are about to open 5 more I.T. offices just like the Boca one. Status of the videophones. They are progressing well. The product is in beta testing and they recently made some changes to the software. He expects them to be deployed in the near future. Supposedly, it is a really cool product. Number of shares. 750M authorized. 610M outstanding. 140M reserved for warrants (750-610). Apparently, there are still some issues with these warrants. He did not elaborate. 208M-212M in the float. The remaining are control or company owned. About 30M just entered the market because their restriction just expired. He said any treasury shares would be used for future acquisitions. I couldn't get the current number out of him. Even with this many shares he feels they can still have a positive EPS (he mentioned a conservative 2-3 cents). Possibility of a stock buy back. He said this is not a consideration at this point. They are more concerned with establishing and running this business right now. Possibility of a reverse split. Not a consideration at this point. It wouldn't serve a purpose now. After the fundamentals are established then they may consider it to attract more attention and to meet NASDAQ requirements. Expectations for the upcoming SEC filing. He said do not expect anything of significance. It will not include any PanAmerican operations. They tried to get some of the operations in before the June 30 deadline, but failed due to lags in paperwork. We will have to wait for the September filing to see anything of substance. Where is PanAmerican going? He said they will shock a lot of people in 99. This year is basically a building period. They are laying the foundation for greater things to come. He feels the current share price is extremely undervalued and even has bought some for himself at these levels. He also mentioned that the September 20th Belize celebration should be a very big event. They are expecting a big turnout. In addition, apparently a shareholder made a song for the celebration and sent it to John. He hasn't listened to it though. My impressions? I didn't go in expecting anything monumental and actually came away with some items of substance. I am still very positive on this company. The only thing that changed for me was my time line (it got extended). Patience is very key at this point in development. There are still a lot of questions to be answered, but I hope this long summary helps somewhat and also quiets some of the bashers. GG