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Microcap & Penny Stocks : Advanced Gravis Computer Technology Ltd.

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To: David Krafcsik who wrote (1675)12/23/1996 12:14:00 PM
From: Norman A. Levinson   of 1780
 
DCF two year time horizon.

It is a fundamental precept, David, in DCF analysis to use a time horizon of, at least, 5-7 years. In addition the discount rate used in arriving at a PV should be closer to the risk-free cost of capital due to American Brands' ownership position and recent funding of Gravis. Note: the shareholders would have been in a similar position wih the AGM approved Yanion funding.

More important the AMB-Midland valuation fails to consider Gravis' worldwide shelfspace which Cooper described as so valuable at the Fiscal 1995 AGM and it also fails to consider or mention anything regarding the overwhelming industry critical acclaim over the GrIP and GamePad Pro Multiplayer emerging Standard. In addition to Gravis' eleven years of worldwide brand equity.

Midland, Geopel and AMB have self-servingly and fraudulently discounted all of this to zero. Richard Groome confirmed Gravis' extreme undervaluation to me personally at this year's fraudulently staged AGM and in front of Jim Geiszler. The shareholders specifically and simply requested that a U.S. firm e.g. Kleiner Perkins value Gravis on behalf of the minority shareholders. This simple request was blatantly disregarded providing unequivocal evidence of further patterns of fraudulent concealment, undue influence and conspiracy.

The self-dealing 'Midland-AMB' analysis is a sham, at best and

RIchard Groome, McCarthy Tetrault, and American Brands et al are guilty of conspiracy.
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