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Microcap & Penny Stocks : ETPI-Military Entertainment Enters Civilian Market -- Ignore unavailable to you. Want to Upgrade?

To: TerriB who wrote (3650)	2/25/1999 2:50:00 PM
From: Toby Zidle	Read Replies (2) \| Respond to of 4767

Thanks, Terri, for posting the FinancialSolutions fax recommendation of ETPI. Several points stick out to lead to my conclusion that this is not high-quality research. First, the best thing in the report is its disclaimer: "Financial Solutions has NOT been paid in cash or stock in any way by the companies we inform you about." That means it is not a hype promotion paid for by ETPI. Excellent! I assume the truthfulness of the disclaimer because anyone around the market for more than a few weeks ought to know that if the disclaimer is a lie then the SEC would eat both the publisher and his wallet for lunch. This doesn't assure us that the publisher doesn't already own ETPI and wouldn't sell his position at a profit far under his target price. On the plus side is that the report describes the positive business prospects of the four ETPI divisions in glowing terms. We all know that already. That's what has attracted most of us to buy the stock. To the negative in this report - far negative - is the near-total lack of any financial discussion. The damaging financial picture is what has dragged ETPI stock to its lows and has been almost completely ignored in the report. This omission would support a claim that it is a 'hype' report. Acquisitions 'double its asset base and lay the foundation for strong revenue growth in 1999.' Each division 'ended FY98 with record revenue in the final quarter.' These are the barest of generalizations. Where is the discussion of bottom-line earnings? What about the need for further finance? Big Question: 'ETPI is actively seeking and negotiating additional acquisitions.' Where does this come from? We've been saying, 'at least ETPI isn't making further acquisitions to drain its cash.' Questionable Conclusion: 'Buy ETPI up to $4.50 per share.' This price is purely out of thin air, totally unsupported. Where is the discussion of projected of projected Price/Earnings? How about Price/Sales? Where are the future earnings projections that are the staple of any analyst's report? Is this report a hype? I think it is. It may sucker in some small buyers who are looking for their pot of gold in penny-stock tips. We might see a 10-20 cent rise in price from these buyers. (Is that what we're seeing today?) But any sophisticated buyer with big funds will see through this report as easily as I have. Sorry, guys.