Sinclare (SNCG) / cyberlinx Message Board

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Microcap & Penny Stocks : Sinclare (SNCG) / cyberlinx

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To: Hairy who wrote (2236)	7/1/1997 3:23:00 PM
From: Dee Jay	of 2696

Harry, it is worth something only if LS is able to utilize the tax loss carry forward to give some benefit to a private company he merges it with. In order to have the tax loss quantified, however, he will have to spend the $$ to have the accounting work done and he maynot wish to do so at this time until there's some likely merger prospect available. It's also worth something since a privately-held company won't have to go through the registration process inorder to become a public company. Let's say XYZ Inc., wholly owned by Harry Kleinsasser and his two brothers wants to take XYZ public. Let's also say that XYZ is very profitable and has a likelihood of a pre-tax profit of $10 million for 1997. By merging with SNCG which has a $4 million tax loss carry forward XYZ may be able to utilize that loss to offset some of its profits (I don't know what the rules are and it's not automtic that they can do so - look at SNCG's experience, for instance). They can do the merger and get those benefits and own millions of shares in SNCG which they then rename XYZ Corp., Inc. and become publicly traded as SNCG has been. No SEC registration filing and all of the legal fees that go with it, no delays, just do it! Dee Jay why is HTEH stock dropping like a lead sinker?

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