Encore Energy Systems Inc (ENCS)

[rdwild]

Well as much as I hate to say it John, EarnestDD is not wrong. The financials could have been better. I was expecting that our OS would be higher (I guess the real question is what were the billion shares used for, if it was just operations then I would be concerned). In fact I was expecting the OS to up up by around 800 mill so I was not that surprised that it was a billion or so (I am fully expecting to see an increase in that again for the second qtr numbers and it would not surprise me if that was also in the billion range). I guess the question will be is what will the next qtr look like. The fact that they were late was not good but the last time around it was a month or so before they got the report out after they promised it, so a few days late it not too bad. If you look at the lose it was mainly due to admin expenses (the one question that I have which I no doubt will not get answered is what was it for ... if it was for the DD and purchase of bio plants when I am ok with that but if not then I think that the expense is too high). I guess we will have to wait until the second qtr numbers are out (hopefully it is not late as well). Since we are throwing things out that I would like to know .... what is the current max production capacity. What is our current production. Based on the numbers that I am seeing and the revenue predictions from last year it would appear that they are not currently operating at capacity (why). There are some good things though ... 1. The price of oil is going up from the low which means so is the price of our product which will put us in a better position going forward. We have the summer driving season which drives up the price of all fuels (ours included, which means that market conditions are getting better). The more bio companies that we buy the less it will cost in admin exp per company (more companies means that the expense is spread over more plants).

Rod