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Technology Stocks : The Learning Company (TLC)

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To: arlequin fool who wrote (4385)4/4/1998 1:18:00 PM
From: Bulldozer  Read Replies (1) of 6318
 
As a frequent lurker, I think I have enjoyed the banter on this thread more than any other. As a bull on TLC, fool's comments have made my mouth drop in astonishment at his total lack of reality. I'd like to add three quick points to show how ridiculous your comments are:

1. TLC runs approx. $100M per year in positive cash flow from operations. THEY ARE NOT RUNNING OUT OF CASH! By paying down $10M a qtr. of debt, without any other financial engineering, they could pay the whole thing off in five years (assuming a refi at expir). That said, more likely is a secondary at a higher stock price that pays off the debt and is neutral to earnings (and every day the stock increases the less shares are required to be issued).

2. The approval process in Canada takes at least 90 days from registration. Since the deal was registered on March 13, it will be June until the investors could convert. So your call option statement proves how far you are from reality.

3. TLC utilizes five primary source code title engines. Virtually all their titles are developed from these five source codes. This CUTS development from about $2 million per title to $500K. TLC can continue to use these engines to produce title after title. They will have no problem turning out new and upgraded titles.

There are many other points I could make, but in the interest of space, and the fact that I'm sure you'll make some excuse to ignore these facts, I'll stop. If you doubt any of this, call the company.

Bulldozer
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