Legacy Storage Systems Inter. Inc-VAST 1500 Gig Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Legacy Storage Systems Inter. Inc-VAST 1500 Gig

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Frederic Borgatta who wrote (25)	9/17/1996 10:21:00 PM
From: Neil Leckett	of 64

Finally got the circular I had a look through it briefly, and will look at it again in more detail (when I get the time!!). To answer your questions... With respect to the re-pricing, I don't believe that it is all that bad. What they are doing (I think) is re-pricing options over 2.25 to 0.44, and higher priced options to 2.25. What this means to me is that they are moving the "carrot" a little lower for the mgmt team. I expect that one of the big reasons is that this is an incentive to keep them working for LEG, and that they eventually expect a higher price (2.25). The only thing that bothers me is that the length of the options is > 4 years at current price. This would mean to me that I am to be (very) patient. On the positive side, the executive team has not been selling shares during the recent downturn (I got that through IR). As for the accounts receivable, I believe that is due to the TECMAR acquisition. They are still selling equipment because of orders that continue to come through this channel. As for adminstration costs, I suspect that a substantial amount of that is due to the TECMAR acquisition. I would probably expect that in a normal course of time these costs will fall closer to last year's costs. It would have been nice to see the TECMAR related costs separated as a sub-item, but alas it is not. Also notice more R&D spending here as well. Most of this will come back to the company as R&D tax credits next year. I summary, I expect that what is really required is a few positive quarters from LEG to remove skepticism. I talked to IR about this, and some other things as well. 1. They expect a substantial part of their revenue to come from TECMAR. 2. Tokenhouse is no longer their PR house. 3. They are working the financial community to get analyst coverage. 4. They are making "teaks" to their VAST system to make it saleable to a broader market. I believe that they are going to add 100BASET eithernet capability. That's all for now. Need some sleep....

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next