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Dennis may not have wanted to talk to you but he's been making some serious open market purchases.

http://finance.yahoo.com/q/it?s=EBOF.OB

 

I would not be at all surprised to see this one make a run to two bucks, or even higher.

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No. of Recommendations: 0

Dennis may not have wanted to talk to you but he's been making some serious open market purchases.

http://finance.yahoo.com/q/it?s=EBOF.OB

 

I would not be at all surprised to see this one make a run to two bucks, or even higher.

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Me neither... But I don't think it means much. In fact, I'm pretty sure the primary reason the LNG outfit was shifted from Apollo to Earth was to be able to show a boost in revenues... Similar reasoning to having all these 51% stakes in bio-fuel joint ventures. Looks great when you report consolidated revenue for the whole shebang, even though you're only getting halvsies on the bottom line (if any).

 

I just checked what that LNG outfit is worth... A measly 2.3 million in revs last reported annual, with an operating loss of 1.1 million. And somehow that biz is worth $35 million in Earth stock? Deals like that could only come via a cozy, related-party transaction. As of the last 10Q for Apollo, it recorded about 2/3 of that value for the LNG biz as goodwill.

 

In the end, I suspect Dennis will put this one to sleep, as he did Aurora, the salvage outfit, etc.

 

I close with a love letter from Dennis's most recent 10QSB for Apollo...

 

"Recent operating results give rise to concerns about the Company’s ability to generate cash flow from operations sufficient to make scheduled debt payments as they become due. The Company has completed recent financings, described above, to help fund its working capital needs. As of September 30, 2006, the Company continued to seek other financing from private placements, convertible debt instruments and other acquisitions to expand its opportunities in the areas of oil and gas production, oil and gas transmission and biodiesel and LNG production and sales. The Company has implemented cost saving measures, primarily in its oil and gas operations, by implementing cost controls designed to reduce unnecessary expenditures and operate production activities within the current economic constraints with which the Company currently operates. The Company will take additional cost savings measures, if necessary, to enhance its liquidity position.

The Company’s need to raise additional equity or debt financing and the Company’s ability to generate cash flow from operations sufficient to make scheduled payments on its debts as they become due will depend on its future performance and the Company’s ability to successfully raise capital and implement business and growth strategies. The Company’s performance will also be affected by prevailing economic conditions. Many of these factors are beyond the Company’s control. If future cash flows and capital resources are insufficient to meet the Company’s debt obligations and commitments, the Company may be forced to reduce or delay activities and capital expenditures, obtain additional equity capital or restructure or refinance its debt. In the event that the Company is unable to do so, the Company may be left without sufficient liquidity and it may not be able to meet its debt service requirements. In such a case, this could result in a substantial portion of the Company’s indebtedness becoming immediately due and payable. As a result, the Company may not be able to continue operations due to liens, collateralized notes or other secured positions placed on the Company’s assets."

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