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Non-Tech : LL Knickerbocker(KNIC)/Pure Energy Corp

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To: Michael A. Johnson who wrote (36)12/30/1996 2:50:00 PM
From: Tom R. Clarksburg   of 1028
 
Hello Michael:

I think the time to accumulate aggressively is now. One of my colleagues is a relative of a principal of one of the off-shore funds that participated in the recent private placement. All three of us had brunch at A very popular New Orleans restaurant on Sunday. I was very surprised to hear how well informed the off-shore funds are on the corporate happenings at Knic and the market potential of Pure Energy. One of the offshores' principal, Clark Hunt actually visited Pure Energy's office and is well aware of coming corporate developments at Pure Energy. That really took me by surprise, since from my 15 years of Wall Street experience, these offshores rarely care about the company's fundamentals. Apparently this group of offshores really did their homework on Knickerbocker and Pure Energy. They are even more optimistic than me on 1997 EPS and Pure Energy. They expect Knickerbocker's core business to do over $1.25 EPS and Pure Energy to even get exposure from Vice President Gore sometime in the Spring.

It was a great Brunch!! They expect a ZITEL-type move from Knic once Pure Energy management begins to talk to institutions and the investing public as a public offering of stock or bonds should come off before May. I do not follow Zitel but when I took a look at the latest chart my eyes nearly fell off, and Zitel has a dieing core business and a 35% stake in a Y2K company like Matridigm. Imagine what the market will do to KNIC stock once they get whiff of the Pure Energy potential and the core business explosive growth.

That is why I will be an aggressive buyer for the next few weeks. In my opinion the time to buy is now, not when the stock makes its run over $10/share and Pure Energy news begins to flood the air waves.

Good luck to everybody and happy new year.

Ciao
Tom
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