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Non-Tech : Bill Wexler's Dog Pound -- Ignore unavailable to you. Want to Upgrade?

To: Bill Wexler who wrote (1395)	6/17/1999 5:05:00 PM
From: Sid Turtlman	Read Replies (1) \| Respond to of 10293

Bill: I don't view MKTY as a fraud with pushers, in the way that so many of the companies you feature here are. I'm willing to grant that the buyers or the stock and management itself genuinely believe that in a few years people will be clamoring to produce electricity in their basement from natural gas, rather than buying it from their electric company. I'm just giving the reasons why, IMO, it ain't gonna happen, and even if it does, the profits will be minuscule. The firm most closely associated with MKTY is First Albany, which owns about 34% of MKTY and has its two top people, on MKTY's board. Presumably many of First Albany's brokerage clients may own the stock as well. If there are any conspiracies at work to pump the stock, I don't know about them. The huge market cap accorded Ballard is probably the inspiration for MKTY buyers. What they don't realize is that, unless Plug Power can sell its fuel cells to the JV at a noticeable profit and/or Plug Power develops a profitable automotive business, they are already implicitly valuing Plug Power at a market cap 10% above BLDP.

To: Bill Wexler who wrote (1395)	6/17/1999 5:05:00 PM
From: RockyBalboa	Respond to of 10293

Active MMs are, besides NITE (24%): Sharpe 1st, and MHMY is 3rd, Spear is with the party, those 3 account for 75% of the volume. per nasdaqtrader: nasdaqtrader.com MKTY Chart reminds me somewhat on EVSI. Before it was an OTCBB stock, biz.yahoo.com and also heavily traded by sharpe, otcbb.com

To: Bill Wexler who wrote (1395)	6/17/1999 5:23:00 PM
From: RockyBalboa	Read Replies (1) \| Respond to of 10293

Also, First Albany is named as stakeholder, turning it around in 1996: From last years S-2, a rights offering edgar-online.com THE DATE OF THIS PROSPECTUS IS JULY 22, 1998. PROSPECTUS SUMMARY The following summary should be read in conjunction with, and is qualified in its entirety by, the more detailed information and consolidated financial statements, including the related notes, appearing elsewhere and incorporated by reference herein. THE COMPANY During the last two and a half years, MTI has undergone significant change. In May 1996, First Albany Companies, Inc. ("FAC") acquired a substantial interest in MTI and led a series of financial and strategic transactions that have significantly changed MTI's operations and fiscal well-being. In July 1996, MTI received an infusion of capital through a private placement of its Common Stock. In December 1996, MTI and FAC succeeded in restructuring a significant outstanding debt of the Company by swapping the debt for Common Stock. This allowed the Company to receive an unqualified opinion in 1996 from its Independent Auditors, Coopers & Lybrand, L.L.P., for the first time since 1992. On June 27, 1997, the Company transferred a portion of the Technology Division to Plug Power, L.L.C. ("Plug Power") to form a joint venture between the Company and Edison Development Corp. ("EDC"). Plug Power has focused exclusively on the research and development of an economically viable Proton Exchange Membrane ("PEM") fuel cell. On September 30, 1997, the Company sold all of the assets of its L.A.B. Division to Noonan Machine Company of Franklin Park, Illinois. The proceeds from this sale were used to pay down outstanding debt and build working capital. On March 31, 1998, the Company sold the remainder of its Technology Division to a subsidiary of Foster-Miller, Inc., a Waltham, Massachusetts-based technology company. These divestitures have enabled the Company to better focus on its profitable test and measurement business. Today, MTI is a very different Company, substantially streamlined in focus, but with many challenges remaining. MTI is a manufacturer of advanced test and measurements products that combine precision sensing capabilities with proprietary software and systems to serve a variety of applications for commercial and military customers. The Company has two principal business units: the Advanced Products Division ("Advanced Products"), which produces sensing instruments and computer-based balancing systems, and Ling Electronics, Inc. ("Ling"), a developer and manufacturer of vibration test systems and power conversion products. MTI is also a member of Plug Power, which hopes to be the first commercial manufacturer of PEM fuel cells for residential and other applications.

To: Bill Wexler who wrote (1395)	6/17/1999 5:32:00 PM
From: BelowTheCrowd	Respond to of 10293

Bill, Started looking at this one this morning. It doesn't appear to be particularly fraudulent, but clearly the expectations are unrealistic. Goes in the same category as many other "magic battery" or "new energy source" companies. They may very well have a product. May even be able to sell some of them. But probably not enough to justify the price. (Not the same category as VLNC, who have no product.) Biggest shareholder is First Albany. Regional broker, but as far as I can tell, not a boiler-room stock hypester. Their latest quarterly report is pretty clear: The aggregate market value of the Firm's [FAC] investment portfolio increased by $23 million from $26.1 million at December 31, 1998, to $49.1 million at March 31, 1999, which was driven substantially by an increase in the market value of Mechanical Technology Inc. (NASDAQ: MKTY). However, the Firm accounts for Mechanical Technology Inc. under the equity method of accounting as a result of the Firm owning in excess of 20% (approximately 34%) of the shares outstanding. Under the equity method of accounting, the Firm did not recognize the increase in market value of Mechanical Technology Inc. I'd actually be surprised if MKTY wasn't on First Albany's restricted list. Not that this would prevent their brokers from "informally" recommending it. (Just as my ex-Smith Barney broker always seemed to want me to buy TRV...) Still, doesn't really smell of fraud. Some interesting tidbits: Latest 401K: During fiscal 1996, First Albany Companies, Inc. ("FAC") had purchased 909,091 shares of the Company's Common Stock from the New York State Superintendent of Insurance as the court-ordered liquidator of United Community Insurance Company ("UCIC"). In connection with this purchase, FAC also acquired certain rights to an obligation ("Term Loan") due from the same finance company ("FCCC") to whom the Company was obligated under the Note Payable ... On December 27, 1996, the Company and FAC entered into an agreement under which the Company issued to FAC 1.0 million shares of Common Stock in full satisfaction of the Note Payable. July 23, 1998 -- Mechanical Technology, Inc. (OTC Electronic Bulletin Board: MKTY) announced today that it has filed with the Securities and Exchange Commission a registration statement for a rights offering to its stockholders, tentatively scheduled to begin in August 1998. Stockholders of record on August 12, 1998 will be issued non-transferable rights based on the number of shares of the Company's stock they own on the record date. ...and just again last month: May 18, 1999 - Mechanical Technology, Inc. (Nasdaq: MKTY) announced today that it has filed with the Securities and Exchange Commission a registration statement for a rights offering to its stockholders, tentatively scheduled to begin in June 1999. Stockholders of record on June 4, 1999 will be issued non-transferable rights based on the number of shares of the Company's stock they own on the record date. Let's see. Biggest shareholder bought their stake of shares due to a regulator-induced fire-sale, and manages to force dilution in order to pay off related debt. Two rights offerings in as many years. Every single insider trade has been a "sell" (http://biz.yahoo.com/t/m/mkty.html). Also have sold off several "non core" businesses over the past few years. Doesn't necessarily make it a fraud, but it doesn't appear to be a healthy company. Got to look more closely at this one. mg