Joe:
We know VARLE very well. When it was VARL and at 7, on the regular exchanges I owned the stock and played it to 10ish. Lost interest as it was fairly priced IMO. It then went to over 30 within the next 90 days.
They are still making money and I do check on them from time to time. I paid particular attention when the news reported that we were down to a dangerous level of cruise missiles last year during the last Clinton foopah. I figured if we needed guidance systems for new missiles then VARL was our company...Unfortunatley that is when they ran into trouble with the accounting and, of course, the countless lawsuits.
I do keep an eye on it from time to time, as I think it will be an excellent investment again one day.
This just came out today on VARL:
Vari-L Company Announces Extension of Forbearance Agreement With Bank One
December 20, 2000 07:00:00 AM ET
DENVER, Dec. 20 /PRNewswire/ -- Vari-L Company, Inc. (OTC: VARL), a leading provider of advanced components for the wireless telecommunications industry, today announced it has extended its forbearance agreement with its primary lender, Bank One Colorado, N.A., from December 15, 2000 to March 31, 2001.
Pete Pappas, CEO of Vari-L, said the Company recently made a $1.1 million payment to Bank One, principally to bring the loan value into line with the revised borrowing base. The revised borrowing base was reduced in part as a result of the completion of an independent appraisal of the Company's fixed assets. However, Vari-L will be able to increase its collateral base in the future to the extent that the Company purchases new equipment that it elects not to finance through other sources. The revised loan agreement also provided for an increase in the loan rate from prime plus 1.5% to prime plus 2.0%. The full amended agreement will be filed by Vari-L with the Securities and Exchange Commission on Form 8-K.
"We are very pleased that Bank One has agreed to amend our agreement and continue working with Vari-L," Pappas said. "We view their decision as an expression of confidence in the progress we have made in the second half of 2000, and believe the extension and revised terms are in the best interests of Vari-L and its shareholders
Ken |
