Formula Systems : FORTY Message Board

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Technology Stocks : Formula Systems : FORTY

FORTY 170.01

-3.9%

Jan 15 1:29 PM EST

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To: gerald tseng who wrote (33)	3/5/1998 10:52:00 PM
From: gerald tseng	Read Replies (1) of 141

Dear ERM: It's so nice of you faxing the ML report to me today. Too bad I only get the 1st 3 pages of the report. ML projected in 11/97 that FORTY will consider larger acquisition in the range of $5-10 mil in 1998. Obviously, Magic Software is the 1st one on that strategy. I remember Josef looked into that deal a while back and had some comment. It seemed to me that even though the largest holder of Magic is Moshov Computer, and they team up with Shamrock group, USA to take over Magic, however, share holders of Magic rejected their proposal instead giving the deal to FORTY. (FORTY becomes the largest holder of Magic at 31.2% and Moshov's stake was reduced to 30.5%)That's a very good vote of confidence based on FORTY's track record of adding value to the acqured company and its technology. (http://biz.yahoo.com/bw/980205/magic_soft_1.html) The deal with Magic has 2-3 weeks for DD, and from the date of PR at 2/5/98, it should be closed very soon. ML is projecting 40% growth of revenue in 97 and 98,(97 rev increased 42% as reported (http://mktnews.nasdaq.com/newsv2/pullstory.asp?textpath=D:\www\nasdaq\news\PR\1998\2\23\PR25883T0732.html&usymbol=forty&logo=Y&companyname=Formula) ML is also projecting 2 new IPOs from its subsidiaries (transtech+IntraSystem and Malchi Sci.+ESI, IPO after merger between subs.) FORTY operates like a VC, but their valuation is better served by using NAV like mutual funds, according to ML.

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