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Non-Tech : Palweb Corp (PAEB) -- Ignore unavailable to you. Want to Upgrade?

To: Chas who wrote (1654)	2/27/1999 3:33:00 PM
From: jmt	Read Replies (1) \| Respond to of 2512

We are just beginning to get some visibility as to the capital structure of this company. We have a considerable amount of common stock. Using traditional measures the company would require net income to be in the millions of dollars to justify the current price. In addition, there are 2 series of prefferred. They may of may not be convertable into common, and if so the conversion ratio is unknown to determine "fully dilluted" shares outstanding. There also may be preferential voting rights to the holders of the preffered. Now even with all those shares, th company needs financing. If in the form of traditional debt, this will not be dillutive however the interest expense will drag on earnings and the principle payments will drag on cash flow. I understand this is potentially a huge market, but one would think as in any market opportunity it attracts competition, and often from well capitalized sources. I have absolutely no ability to evaluate the competitive advantage of this technology, and that is the most important issue in the companies success. Viomonta must be quite a small company, if 20% ownership can be had for 15M shares. That assumes the entire value of the company is less than $7.5M dollars. Why is business being pursued in Europe and South America and not in the US. Favorable environmental laws or less competitive market? jmt