Asus-
I expect EBIT to be between $15-20M for 2006 based on the little transparency we have from the company. Their margins are still thin because so much of the revenue comes from Pro-gas, which averages probably 3% margin at best.
As for A/S=O/S for preferred, I have a hard time believing that they would do that to their own investment, as the pay out for them comes from having a higher pps, without doing a r/s, diluting or any "toxic financing" from preferred. Keep in mind that PA has lost everything before, lived at the Pit at one time, and went 5+ years without a real paycheck. I'm sure he's getting paid now, but his real payday comes from a buy out at a higher pps of the shares that he and Carolyn own.
As for the preferred themselves, based on the online records (I doubt you have time to dig them up but they are easy to find) that they have to file with county and state sources due to some of the lawsuits, there must be several series of Preferred. Some are at $10, some are at $1, some/most pay a dividend, and some/few convert to common shares. But you are right in the fact that without filings, it will be impossible to know how many of the authorized preferred are outstanding. Time will tell.
Finally, Paul must be able to sell them something that we can't see for these companies to be willing to part with their family businesses and life's work to an ex-Chap 11 Louisiana developer who gives them "promises of future payment" in the forms of stock for the companies they love. Either that, or every business they have ever acquired was run by idiots and Paul is the greatest door-to-door vacuum seller of all time.
Ren
PS Nothing shows that they are going to lose the pit any time soon. The owner/lessor of the pit claims that Phoenix was in violation of the "no sub-leasing" clause of the lease when Phoenix allowed United Soils of LA, a company they own, to mine the pit as well. The judge already overruled and will not allow the owner/lessor to bring the issue before the court again for at least another 18 months beginning 11/06.
PPS Sorry for the book of a post in response...
"Experience: that most brutal of teachers. But you learn, my God do you learn." C.S. Lewis
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