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Technology Stocks : NewKidCo International (OTC:NKCIF) (TSE:NKC)

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To: esecurities(tm) who wrote (126)4/10/1997 11:50:00 PM
From: TechAlive   of 4231
 
Leveraged BuyOut [LBO]

I don't understand LBO enough to know whether this is in fact
a textbook LBO or whether it is even worth them doing this. If
they (main shareholders) buy their stock on the open market
it will drive up the prices temporarily. But when the dust settles
the price will drop. Lower volume than there already is, even less
interest, small shareholders will have lesser say than they already
have. Basically a public company with shares very heavily
concentrated inside. It can have its advantages. If the
guys inside pull it off, and then build the company, they will
get filthy rich. The little guys who hang on, have only a chance
to recover any previous principal if they get rich, and make some
gains buying low, and waiting a few years.

Can you find out if they have they started discussing this option
and let us know.

Tony.
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