GRIN (Grand Toys International Inc) Message Board

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Non-Tech : GRIN (Grand Toys International Inc)

GRIN 27.01

0.0%

Dec 2 3:59 PM EST

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To: Kevin Podsiadlik who wrote (477)	11/30/1999 11:44:00 PM
From: Frank McVerry	Read Replies (1) of 495

Kevin, <<Ah, so your $11-14M figure does include a re-borrow on the credit line. That does make a difference.>> Nope. The $11M is my year-end estimate of their cash position. At that time, there will be a zero balance on their credit line. For the following year 2000, as I see it, their choices for the cash are the following (1) Put the cash under a mattress. (2) Buy a nice set of CDs and T-bills (3) Buy their Winter/Spring inventory with the cash instead of using their credit line (4) Use the $11M for growth Choices (1), (2) and (3) are conservative no-growth scenarios, with little to choose between them, except for a few hundred k in pretax earnings ( (3) is a little better than (2) which is a little better than (1)). None of these three would drive the price much more than about $1 or so higher than present levels, assuming year 2000 was a similar year to 1999. Choice (4) is the only one which will take the stock price to significantly higher levels. FWIW, Frank

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