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Technology Stocks : Southwall Technologies
SWTX 46.990.0%Jul 1 5:00 PM EST

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To: Arthur Radley who wrote (978)11/7/2000 1:47:27 AM
From: TBF  Read Replies (2) of 1143
 
You are being excessively negative, IMO. I am prepared to bet giving you 5:1 odds that SWTX has paid the required fee and/or has agreed to pay it pending approval to begin trading. Although cash is tight, cash flow is positive and my recollection is that it has not even used its entire credit line. Excluding startup costs and non-recurring legal and secondary offering costs the company was actually profitable in both Q1 and Q2. I am not defending management's mistakes, but the company is very likely to succeed in the long term--although possibly not as a listed NASDAQ company.

SWTX actually has some leverage in negotiations because there are multiple companies interested. In addition it can probably survive indefinitely, but would have to reduce capital expenditures which would reduce revenue growth. It could also enter into a JV or other arrangement to reduce capital expenditures.
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