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Gold/Mining/Energy : Thermal Control Technologies Corp TCT (was Redux Energy) -- Ignore unavailable to you. Want to Upgrade?

To: Saverio who wrote (679)	2/27/1999 8:42:00 PM
From: Edward W. Richmond	Read Replies (1) \| Respond to of 1208

Saverio, thanks for the ratios. It is great to see the declining ratios of (cost of goods sold)/Revenue. Also, TCT's administration expenses in Q3, unlike another micro-cap I hold, were very much under control. Several other observations can be made from the Financial report. 1. The gross profit margin is approximately a 60% for Q3. A major improvement over the first 6 months and pretty positive from my point of view. 2. Earnings per share were $.03 for both Q3 and for the combined Q1 and Q2. That certainly is positive. If we extend the Q3 rate of earnings to Q4, we will have annual earnings of $.09 per share. If the stock price of $0.61 were to continue to the end of Q4, we would be trading at a P/E Ratio of 6.8. That would be dirt cheap for a profitable, emerging company. I would expect a P/E of at least 10(very conservative) which would indicate a price of $0.90 minimum. A more reasonable P/E of 15 would give us a share price of $1.35. I was pleasantly surprised with the Q3 results. If this trend continues, and once we get the financing completed, this stock should move up smartly. I would definitely look at adding to my position before the stock got too pricey. Regards, Ed