TESCORP (TESC) = Undervalued Opportunity! Message Board

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Microcap & Penny Stocks : TESCORP (TESC) = Undervalued Opportunity!

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To: MKEL who wrote (77)	8/14/1997 8:34:00 AM
From: timmy e.	of 206

Mkel, Sorry I haven't replied in a while. I had no access to the Internet due to technical problems. Anyway, Tescorp finally announced their equity financing deal. 12 million shares to be sold (2 million by existing shareholders) at approximately $3.25 (closing price on day before announcement) means a capital infusion of $32.5 million. The 2 million shares sold by existing shareholders should not be viewed as a negative. Insiders still hold close to 4 million shares and the selling of these shares will improve liquidity. $6.9 million of the proceeds will be used to eliminate ALL REMAINING DEBT on the balance sheet, with the remaining amount to be used to upgrade existing systems and to purchase additional systems (The S-2 filing stated that an option to buy another $2.6 million system (4,000 subs @ $650 per?) has already been purchased). I spoke to Tescorp's IR person and he couldn't say much because he was told they are still in a quiet period. Why continue to be in a quiet period? This news is all public information now. Do you think another financing deal, containing all debt, could be in the works? I do. It makes sense to me. Why would you want to eliminate all your debt (With a measly $6.9 million being almost nothing to a cable television company) and remove all your leverage? My instincts say another deal is in the works (perhaps with another firm). Could this lead to another analyst picking up coverage of TESC? I hope so. Two more (positive ?) notes...........TESC also filed to be placed on the NASDAQ system (not the SMALL-CAP Nasdaq)and...........TESC's fiscal first quarter numbers are due out today. Let's keep our fingers crossed and hope revenues and system cash flow continued to show significant growth.

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