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Gold/Mining/Energy : Direct Focus Inc. (DFXI)

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To: Clement who wrote (154)11/25/1997 9:23:00 PM
From: trilobyte  Read Replies (1) of 768
 
Clement,

a few quick observations...

i) the stock market response if/when BFX
acquires a new line of product will in great
part depend on the manner in which they
acquire this product (new share issue, debt,
live within their limits by paying cash).
To me also, Rice emphasize they are a direct
marketing company rather than a fitness product
one.

ii) concerning capitalization of expenses.
The most to loose will be BFX so I guess
(I hope!) they would proceed carefully...

iii) can you expand on the bonus criteria
S&S didn't meet? what were the exercise price
of their warrants? I kind of remember they
were issued several shares in the 40ct range...

iv) Thanks for providing this additional
information!

Trilobyte

p.s. Concerning QZR, I believe there was fraud
involved. A company doesn't go from 20cts/share
to bankruptcy in one Q! Even with cash flow problems,
they should've had assets to dispose of to
allow survival, at least that's what the balance
sheet suggested... I think their receivables were
fake! Anyway, nearly lost my pants on this one...
buying at 7$ and doubling down at 1.8$ and selling
at 3.60$ a few days after the 1.8$ purchase. A mutual
fund that I like: Sceptre Equity had 1 million
shares+ of QZR. So the problems were not at all
obvious. PHEEWWW! still gives me shivers to know
this thing went belly-up 3 weeks after I sold!

p.s. what stocks does your club like? Any opinion
on BSP?
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