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Gold/Mining/Energy : American Eco (ECGOF, ECX on Toronto exchange) -- Ignore unavailable to you. Want to Upgrade?

To: david james who wrote (2707)	8/15/1998 7:02:00 AM
From: Skeet Shipman	Respond to of 2841

David, I can't understand how you still believe anything this company or it's accountants release - even SEC filings. It appears to have been an accounting pyramid acquisition scam, depending on acquisition stock and debt issuances to cover compounding negative cash flows. Kiss your stock ownership goodbye. They will be filling bankruptcy within a year with the debt holders getting anything of value. Who are the debt holders? - ??? the originators of the scam??? ( If not, they would have been offering their stock holders the right to buy bonds. ) Skeet

To: david james who wrote (2707)	8/15/1998 9:50:00 AM
From: JimieA	Read Replies (2) \| Respond to of 2841

This would be very disappointing if true. "I also learned that the Company currently does not plan to write down its investment in DBCO since it does not view the current events as a "permanent impairment." If Fradella is to turn around Eco, he must be able to face up to past mistakes. Write them off and move on. I think the best news would include some restructuring with related write offs, including divestiture of non performing operations and assets. Along with a definitive plan to turn around remaining operations. If not, it is indicative that McGinnis is still pulling the strings. Improvements will be slow and painful. I do not think that Eco is a candidate for bankruptcy. At least not for a while. $120M in equity, $38M in cash. And the cash should be growing with the repayment of Notes receivable outstanding. The last quarter was the first loss in a while and if the company can take some proactive steps to turn the business around. They do have a large backlog of construction work to through. IMO, it may be time to invest in a turnaround. Although, I have been wrong before.