Ergobilt (ERGB) - Ergonomic Chairs Message Board

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Biotech / Medical : Ergobilt (ERGB) - Ergonomic Chairs

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To: Ploni who wrote (9)	9/26/1997 6:17:00 PM
From: Cosmo Daisey	of 900

Charlie, I haven't positioned yet either. I need to watch the tape for awhile and base my decisions on the trading more than the news. The news is compelling and the Edgar filings are interesting to read after you have read Asensio's reports. This is my take on things: The public offering of ERGO was done to raise cash to buy the furniture business rather than take the furniture public. This established ERGO as a conglomerate looking to take over other companies, however ERGO paid way too much to buy ERGO's CEO's brothers company (Bodybilt) and even paid ten million for the goodwill. This had a two fold effect. The contract with the developer and patent holder of the chair seat they manufacture as the core of their product line had a clause that canceled the contract when more than 50 percent of the Bodybilt company was sold. ERGO is in a lawsuit with the developer now because they continue to manufacture the product without "license" and are not paying royalties. They claim some right to the product even though they don't own it as long as they don't advertise the trade name of the patent holder. This is a fantisy on their part. however, in contrast to AVNT they will probably prevail in the right to manufacture by paying past royalties and sign a new agreement if they stay in business that long. The revenue loss is easy to document because they know how many chairs they sold and the patent holder doesn't sell or make them so he can't claim loss of revenue from unfair competition. This establishes the managment of ERGO as people who may not be the best people to be involved with. The addition of the reporter machine and the baggage that comes with it is a continuation of the same thing. One of the people changed his name to escape past dealings. He and another were fired from EDS and EDS no longer is interested in the product. There is also a stock promoter in the mix of questionable reputation acording to Asensio. This looks like a company that will be selling Reg S by the millions and collapse the price to a few pennys. Reverse the stock and do it again or change the name. BCHP now LTGL just went through this, same people, same product, same story. They must have a play book they read. I think ERGO is a great short waiting to happen, I just need to get the timing worked out. Coz

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