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Microcap & Penny Stocks : American International Industries Inc. OTC BB Symbol EDII -- Ignore unavailable to you. Want to Upgrade?

To: ColleenB who wrote (2706)	9/11/1998 9:32:00 AM
From: jmt	Read Replies (1) \| Respond to of 4814

The acquired companies projected annual revenues are approximately $10 - $12 million and profitable. Colleen: The key to this statement is the work "projected". This means the company may or may not be profitable today, but with Dror's magic (which we are still waiting for evidence of) it might be profitable in the future. The transaction will be treated as a purchase for accounting purposes. Acquisitions can take two forms, purchase or pooling. When pooling is used, assets and liabilities are combined on the Balance Sheet. When the purchase method is used, if Dror paid a premium for the company, he can call it Goodwill, which increases book value. So the more EDII overpaid, the more the book value increases. Kind of like smoke and mirrors. jmt