I think CLCK will make a rapid recovery higher if we get a positive resolution. Read the following paragraph from the 10Q:
On October 1, 1997, the Company entered into the Master Agreement with BestBank for processing and services for its customers with which BestBank has entered into contractual agreements. Since the Best Bank closure in July, 1998, the Company has continued to process the Portfolio's accounts, pursuant to the terms of the Master Agreement, which remains in effect, and has been receiving payment from the FDIC for its processing services pursuant to the Master Agreement. Although the Company continues to generate revenues from the Master Agreement with BestBank, the closure of BestBank may have a material adverse effect on the Company's future operations due to the Company's current dependence on the revenues derived pursuant to the Master Agreement. The FDIC has placed the Portfolio up for public sale and expects to close the sale of these assets prior to December 31, 1998. No assurance can be given that the Portfolio will be sold, or if sold, that the buyer will continue to utilize the services of the Company for processing the Portfolio. However, the Master Agreement has provisions which call for significant liquidated damages which may have to be paid by the FDIC to the Company should the Master Agreement be terminated, without the Company's consent, prior to the end of its term.
Not only am I running out of shopping days but the FDIC is running out of selling days in December if they still expect to close this sale this year. In the meantime I will be picking up some more RDIM and I'll look over TSIG again too.
Regards, Jeff
|
