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Technology Stocks : edusoft (EDUSF)

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To: Burlitis who wrote (75)9/3/1997 3:13:00 PM
From: steve host   of 272
 
Alex - TLC does not have to increase their debt to take over EDUSF. They have used equity swaps in the past that does not cost them a dime. Their stock has come alive lately (doubled in 6 weeks) and the refinancing you are talking about was an investment by a group of investors who are known for their quick deals (they sold Snapple to Quaker Oats at a great profit). Although an equity swap would dilute TLC shares , it would be offset by EDUSF profits depending on how large a stake they take in EDUSF. TLC has been upfront with its strategy of expansion by takeover and I dont thing it's about to change. However, it would probably be an equity deal to avoid more debt. Again this is all speculation but it seems like a great fit when you consider TLC's distribution ability - schools , direct mail, etc.

Meanwhile we are on the move 10 1/8 - next stop is 12
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