NTN Communications, worth 185 million? Message Board

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Technology Stocks : NTN Communications, worth 185 million?

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To: Rich Genik who wrote (297)	11/15/1996 9:59:00 PM
From: Patrick Keeler	of 2985

>>> In addition, the Sale-Leaseback agreements have been criticized. I must admit that even though I've read extensively NTNs unfolding story, I never got a clear picture of how these agreements were financed, and who actually owned the leased systems. <<< When I first read about them in a company report I thought they sounded fishy. I trusted mangement that they wouldn't do something that would improve revenues but never turn a profit. >>> So in short, I think that some type of leasing option is essential for full market penetration, but from what I'm hearing here, it can be done much better than it has been. <<< Sokol spelled it out this way. To purchase (capitalize) every system that is currently leased back, would be a one time cost of $4.5 million. The way it was set up under the Downs' was costing NTN $4.5 million annually until the end of time, or close to it. It was like burying someone in a tuxedo because it is important they look good. Only mistake you made was renting the tux instead of buying it :) Hopefully we will look back on this conference call as the turning point one year from now.

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