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Microcap & Penny Stocks : JTS- "A Nordic Drive in Every PC and laptop"
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To: dan grone who wrote (1346)9/23/1997 6:46:00 PM
From: novice investor   of 1985
 
Hi Dan,

"JTS has significant tax-loss carryforwards from Atari and has created almost as a large a loss carryforward in the last year, by my calculations the total exceeds $500 million, this might be attractive to a potential acquirer."

I didn't realize that the tax-loss-carryforward can be considered as an acquisition incentive. I presume the idea here is for some rich corporation with huge taxable profit to procure company like JTS just to avoid giving too big a cut to Uncle SAM? Interesting. Do you know of any prior examples of this kind? I'd like to study about it.

I agree with your observation concerning JTS's money issues. They'll need to take drastic actions to raise cash and I believe they have been open for any acquisition offers for some time. Probable actions from here on include sell off inventory with big price cuts, sell off any salable assets, massive layoffs, hiring of turnaround specialists, search for any loan/line-of-credit and negotiations with all creditors on payment past due.

I'm one of the "it's too low to sell now because I've got too big a loss and it's a paper loss as long as I don't sell it" people. Ever since the departure of CFO in May, I've watched very consistent and clear pattern with plenty of warnings but some inane hope keeps me from selling this turkey. If I could only sell my JTS loss as "private tax-loss-carryforward" to someone with too much profit...

NI
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