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

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To: Anthony Zack who wrote (609)8/5/1997 4:44:00 PM
From: Juan Dominguez   of 1028
 
Tony, READ MY LIPS!!!! NO MORE INFRASTRUCTURE AND/OR CONSOLIDATION CHARGES!!!! There will be a nice improvement in operational earnings, and thats all I care about. How much of operational earnings flows to the bottom line is tough to predict since they will have a non-cash expense in their "equity in losses of PEC and Ontro". When Ontro goes public in October KNIC will have a Non-recurring gain of about $.30/share thereby bollooning EPS for the 4Q by .33. Do you think the market will react to that? NOT! All the charges KNIC took have been Non-recurring charges, so the Ontro gain should cancel them all out.

By-the-way, the stocks rise to $9 has nothing to do the core business and the decline to the current level has nothing to do with the 2q EPS. I expect the stock to recover to above 9 in the next 6 trading days.

Hang in there!
Juan
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