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Technology Stocks : Erawest{ERAW} -- Ignore unavailable to you. Want to Upgrade?

To: M Murphey who wrote (28)	3/9/1999 4:16:00 PM
From: Blue Voodoo	Read Replies (1) \| Respond to of 40

Some new hard data & calculations on ERAW earnings & valuations: I've now spoken a bunch of times to Tim Ellis, 352/690-1633 at Speight & Associates, - he handles investor relations for ERAwest now (his name and phone # are at the bottom of eraw press releases). Here's the scoops: 1. When ERAW releases its financials, it will report solid, positive earnings (he let this slip, probably by accident, a few days ago. When I called back today to confirm it, he said the accountants would not allow him to comment on revenues or earnings). 2. ERAW is officially considered a nonreporting otc company now (surprise, surprise). To stay listed, SEC rules require that they report within a few months of now, so there is an absolute deadline they must meet. Having city line deal completed today brings us closer to getting the data released, since getting the details of that deal ironed out was one of the delays. 3. While nonreporting, otc companies are allowed to raise a maximum of 1 million dollars by equity placements. ERAW did this over the last few months to finance the UAT and cityline acquisitions. 4. While unwilling to comment more on financials, Ellis confirmed that the current float of ERAW shares is 1.2 million. Here is where the interesting calculation comes in. A year ago, the float was about 1 million shares (another 8.9 million are privately held and do not trade - the holders of those shares have a huge stake in getting ERAW turned around and, ultimately, sold). Anyway, the point is, ERAW raised a million bucks by releasing 200,000 shares. Hence, in private placements (presumably by insiders who were able to look at their books), it appears that ERAW is valued at $5 a share. At the current buck a share, I've been spending every spare dollar buying more eraw.