continued....
<<The second class of preferred stock Leto considers a problem is owned by Credit Lyonnais, a French bank that is in receivership. Leto said that Network Imaging could realize the $6 million needed for Nasdaq compliance if it could get a fair value for the French class.>>
I think Dorotech has already been sold and the deal will close before the end of the year. This is strictly a rumor.
<<Alan Jacobs, an analyst for Avalon Research Group Inc. in Boca Raton, Fla., said Network Imaging should sell its French subsidiary, Dorotech, to solve the problem. Dorotech, which employs 100 workers and accounts for about one-third of Network Imaging's revenue, has stunted Network Imaging's revenue growth, Jacobs said. If the French business is sold, the French preferred stock will be eliminated.>>
My sentiments exactly. That will solve the Nasdaq problem.
<<Still, Leto is confident that his cards will fall into place in time for the Nasdaq deadline.>>
That is my confirmation that it will happen by December 31st.
<<Although government work is a small percentage of Network Imaging's sales, the company has already signed contracts with the Treasury Department, Department of Defense and Department of Health and Human Services this year.>>
Hopefully the IRS will be added to that list, thanks to Constance.
<<Furthermore, the company has established sales-channel alliances with Sybase Inc. of Emeryville, Calif., and Intergraph Corp. of Huntsville, Ala., Leto said that 12 other relationships are under discussion with Microsoft Corp., Oracle Corp., Sun Microsystems Inc., Digital Equipment Corp. and other companies.>>
That sounds like bullshit that he was feeding to a reporter. Sybase and Intergraph are true, but the rest have already been beaten to death.
In summary, I have got to believe that they have a plan to get the average stock price for the 20 day period above $1.75. Bankers Trust / Alex Brown negotiated that deal for IMGX and has credibility on the line. They must have something planned. :-)
Also, 450,700 shares traded today and it was mostly tax loss selling that we anticipated. If you noticed, the stock was down most of the day, but bounced back as soon as the 1 1/8 offers were gone. If you look at time and sales, most of it came from one market maker.
Jay
(all of my comments are simply my lousy opinion and reflect the opinion of nobody but myself) |
