Lason(LSON)-Interesting Turnaround Candidate??? Message Board

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Technology Stocks : Lason(LSON)-Interesting Turnaround Candidate???

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To: Dave Peterson who wrote (26)	5/13/2000 6:03:00 PM
From: bronco	Read Replies (1) of 28

At slightly over $4 per share, this stock would appear to be a steal. However, one must consider the following: - Its most recent Board mamber abruptly left in early April; for reasons yet disclosed. - Management has lost the backing of Wall Street when they preannounced in December, only to miss the new Q4 number by a factor of 3 - Their debt level is growing by the day. Under the current earnout schedule and their capacity to borrow capital, the company does not have sufficient funds to finance future growth. It looks like the company grew too fast and now they are paying the price big time. - With rising interest rates just around the corner, the stress on the balance sheet wil continue to grow....the risk of defaulting on their credit facility is HUGE! - ALL EMPLOYEE OPTIONS, including those of management, are underwater (WORTHLESS); according to their 10K filing on March 31, 2000. - Top three executives are in debt to the company on the order of $2 million and unfortunately, the collateral that Lason is holding is worthless (executive stock options). THE ONLY REAL PLAY HERE IS IF THE COMPANY GETS BOUGHT OUT OR IS TAKEN PRIVATE...TIME WILL TELL

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