Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Kafus Environmental (KS) -- Ignore unavailable to you. Want to Upgrade?

To: Peter G. Mackey who wrote (136)	1/10/1999 10:11:00 PM
From: Abuckatatime	Read Replies (1) \| Respond to of 229

Which of the two news releases last week, the first announcing the non-dilutive finalization of the Lackawanna financing, and the second describing the Samarac swap of Canfibre cash flow for convertible preference shares, was more responsible for the strength in KS price? Beats me. I welcomed them both. The several-month delay in closing on Lackawanna is over and concerns about a Riverside-like dilution, justified or not, have been put to rest. Those who were turned off by the unconventional compensation contracts between Samarac (Swaisland) and KS may be more comfortable with the new arrangement. Time will tell. Riverside is approx 85% complete I believe and is scheduled to be operational by the end of Q1. Quality board could be ready to go by mid-late spring. I'm not counting on seeing any significant Riverside revenues until Q3. Regarding the particulars of the MDF contracts - the numbers I have seen: approx 80 million sq ft of board/plant when fully operational; US$.30-.60 eps for KS possible in '99 (McCabe interview) of which roughly half, in my estimation, would derive from CFGL. The Stockplayer writeup has some estimates/projections you may want to look at. Otherwise, I'm not sure CFGL or KS has released any specifics regarding the pre-sale contracts. Hopefully someone more well-informed than I can supply additional info. Greg