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Technology Stocks : Avalon Group, Inc.

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To: wombat who wrote (822)1/14/1999 11:18:00 PM
From: equalizzer   of 1530
 
Good question. If you think the process through we have to consider the fact that the majority of Bulletin Board stocks are issues that come public through shell companies. There is little legitimacy associated with them. Consequently the likelihood of getting good Investment Banker support and broker retail support is remote. The market for Bulletin Board stocks is generally illiquid. Most large brokerage firms do not allow their brokers to promote these companies shares and we have to sign all sorts of cover my ass letters before we are allowed to buy.

In order to build for success we have to consider what is the ideal business model. Does the current company fit the model? Clearly not. The running of a public company and building for success is something investors should want to see. So what is the right model?

The creation of an idea and vision is important. Then can the company implement? Does it have the management and support staff needed to see the plan put into practice? Is the plan going to create value for the investors and shareholders? Then does the company have the right support to oversee an IPO and subsequent market support?

If the company truly has an area that it can carve out for itself. If it can create or acquire intellectual property rights and protect such in the form of Patents and copyright protection we may be on to something. (Watch the web site stayhealthy. com) Then if the company can get others enthused through good promotion and marketing, the picture will look more complete.

Will the company not only promote the companies products and services, but also the company to the brokers and investment bankers, and funds, so that the shareholders will receive value? If we see affirmation to the above then the future would see the possibility of a stock traded on a National Exchange and a company intent on making money and building shareholder value. If this is the case we potentially are in good shape. What value will the IPO be at? That decision is normally made closer to the actual IPO and will depend on the support the company has just prior to the actual date of the offering. It would be safe to assume that it will be at higher prices or why go through the exercise?

As a final thought I usually do not invest unless a company has a product or service I personally want or would use. What is AHS planning to do that is different from AVAL?
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