TouchStone S/W (TSSW) Message Board

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Technology Stocks : TouchStone S/W (TSSW)

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To: David Alan Cook who wrote (2604)	4/12/1999 2:08:00 PM
From: BGL	Read Replies (3) of 3627

David, I have the following concerns regarding TSSW. The stock was purchased for $4 million (approx.). $1.2 million in cash and the rest to be in new stock. I assume that we will also learn about Calvin's terms of employment. The issuance of the balance of this payment in TSSW common stock will cause ~ a 40% dillution in earnings. IMO that's quite a lot of dillution. I believe that issuance of this stock after the annual meeting in July may see us back down at the $0.75 price range again. We will have had only 1 quarter of hard evidence on what Narath can do (and probably a loosing quarter at that). Assuming TSSW breaks even this year and Unicore makes $500 000, yearly eps is $0.04 (after dillution) or $0.06 (before dillution). I think we're a long way away from seeing $4 a share. I'm really eager to see combined financials. David, do you expect Unicore to bring any working capital into the equation? Good Luck...BGL.

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