Energy Connect Group, Inc. (fka ECNG)

[Huggy Bear]

Another note of caution, from page 4 of the 10Q.


The accompanying unaudited condensed consolidated financial statements have been prepared on a going concern basis, which contemplates
the realization of assets and the satisfaction of liabilities in the normal course of business. As shown in the consolidated financial statements
for the year ended January 2, 2010, the Company incurred net losses of $3,222,021 and generated negative cash flow from operations in the
amount of $1,253,762. In the nine months ended October 2, 2010, the Company had net income of $2,443,735 and generated positive cash
flow from operations in the amount of $1,251,567, but expects to report a net loss in the three months ending January 1, 2011. These factors
among others indicate that the Company may need additional funds to continue as a going concern for a reasonable period of time.

Not exactly in the clear yet. Hmmm, maybe I won't be buying those shares back before the next Q if the company readily admits that it will likely be a losing Q, maybe flat at best. This is not a given, but if they are predicting a 4th quarter loss then its probably prudent to take their word on that.


malc