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To: Gator who wrote (8634)	12/20/1998 8:31:00 PM
From: Steven G. Trapp & Company	Read Replies (1) \| Respond to of 8798

ECIC Research! Ahead Of The Street Research Report: Eagle Capital (ECIC) This in-house report is the premier Ahead Of The Street research report. It will shortly be posted to AheadOfTheStreet.com, the next BFN member web site. The first in-house report for Small Cap Forum was LCS Golf. Not only was LCSG undervalued when we initiated coverage (it still is undervalued in our opinion), it had a "sexy" story to go with it. It is an internet play with all the prospects that industry enjoys. The second company we are initiating coverage on is more of a low-tech company and by first glance, not a sexy company. Well, the company might not have a lot of sex appeal, but we think the stock and the company's prospects for tremendous free cash flow are certainly attractive. The company is Eagle Capital (ECIC- otc bb). Eagle Capital International will act as the principal resource for equipment capital for IMSI - Integrated Masonry Systems International, Ltd. IMSI has developed a revolutionary new insulated masonry construction block system with distinct advantages over traditional brick and mortar construction. The advantages of the IMSI system are such that we believe it could be the first choice construction method in many emerging economies. The focus of Eagle Capital and IMSI will be underdeveloped economies that need to upgrade the residential and commercial facilities and is a much safer play on the recovery and long-term growth prospects of countries like India, China, and many Latin American countries. Rather than investing directly in those economies, we believe the risk-reward ratio is much better by investing in U.S. companies that are poised to profit internationally and domestically. Description and Advantages of the IMSI Construction System The IMSI Wall System features insulated reinforced masonry that is mortarless and dry-stacked. The bricks have pockets in which insulation is embedded within the wall, but it is done without sacrificing structural integrity. The bricks are stacked without the need for a layer of mortar between bricks, instead IMSI system utilizes a Structure/Coat Surface Bonding Cement which provides a weather-resistant, structurally sound, and impermeable surface. IMSI - Wall System Advantages Cost Competitive Airtight Engineered for seismic conditions Low maintenance costs Environmentally friendly Quick installation Ease of installation- semi skilled workers can be quickly and easily trained Flexibility of use- commercial, residential, institutional, and governmental construction Of these advantages, a few should be given particular attention. Emerging economies have an over supply of unskilled labor and shortages of high skilled labor. The mortarless construction method is ideal. It does not require heavily trained, skilled labor. Unskilled labor can be trained quickly to use the IMSI construction system. This advantage gives IMSI a very solid strategic position over competitors. Foreign governments are motivated to keep unskilled labor employed to increase living standards and reduce potential for political unrest. Many construction contracts are engineered through government agencies and the IMSI technology will get Eagle Capital's foot in the door. Why We Believe the Stock is Undervalued Eagle Capital trades at about $2 per share and has 2 million shares outstanding. That puts a market value of $4 million on the company presently. The company's paper assets are its licensing agreements with IMSI, position as the provider of equipment capital for IMSI, rights to be sole marketer of IMSI technology in some international markets, and joint venture partner in other projects. In addition to the present day value of their relationship with IMSI, Eagle capital has or will have significant hard assets very shortly. They have a letter of intent to acquire land in Utah valued at $4.5 million, consisting of approximately 275 building lots in the city of Lehi, Utah, a suburb of Provo, the home of Brigham Young University. The development will serve as a pilot project for construction using IMSI technology. The technology has already been used to build 1,000 buildings in the U.S., so its use is proven. Just the value of that undeveloped land exceeds the market value of ECIC. Eagle Capital will also add value to land by developing it. Eagle Capital will also acquire a minimum of 20 portable block construction plants in 1999 and an additional 50 in year 2000. Each Mobile Block System costs Eagle $500,000, but these plants have a very high return on investment. Eagle expects plants to be fully utilized which means the plants pay for themselves in 5 to 6 months. The plants have a life span of 20 years, which means 19+ years of free cash flow. With plans to have 20 such plants in 1999 and 50 in 2000, Eagle is looking at millions of dollars of free cash flow. The first significant international project has already been announced. Eagle Capital has a contract to build 30,000 homes in 18 months in India. This will be phase 1 of a multi-phase plan and will require 20 block system plants alone. As of August 7, 1998, twenty IMSI cooperative joint ventures were already in the works with multiyear construction schedules of 2 to 15 years. The contracts have been signed with several international governments and are also backed by the IMF and Work Bank. No mortar between blocks, so fast and simple construction. Finished with rock hard Surface Bonding Cement on both sides. Structure/Coat Surface Bonding Cement is a mixture of Portland Cement, fine silica sand, chopped fiber glass fibers, chemical plasticizers and anhydrators. The dry mixture only needs the addition of water on site and then applied at 1/8" thickness or thicker. Then facades of brick can be added or the smooth finish can be painted. bizfn.com