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Non-Tech : Lunn Industries (LUNN)

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To: Ken W who wrote (1401)10/26/1997 8:11:00 PM
From: Sergio H   of 1436
 
Ken, I'm afraid that people really don't understand this one. I was telling somebody about LUNN today. After listening to me he said that he can't buy it because the conversion ratios from each oldco to newco might be erroneous. I explained to him about Allen and Co.'s
fairness statement and the basis for their research. I lost him. He did not understand how Allen and Co. could evaluate a co. that has not publicly traded.

I believe that the market will recognize the value of the merged co.and that the share price will appreciate comensuratly. The Army contract that you mentioned is just one of several important news releases that we will see in the next few weeks. I expect that the co. will apply and qualify for a NASDAQ National Market listing, that the
company will be announing a PR/IR firm representation, new contract announcements and expansion of LUNN's Alcore Division's procuction. We can also look forward to LUNN's earnings being released next week. I am not sure if the earnings release will be the combined co's or just LUNN's earnings

A lot of good stuff is coming out in a very short time.

Sergio
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