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Strategies & Market Trends : Stock Watcher's Thread / Pix of the Week (POW) -- Ignore unavailable to you. Want to Upgrade?

To: Francois Goelo who wrote (19936)	11/26/1999 2:06:00 AM
From: OLD JAKE JUSTUS	Respond to of 52051

TO: ALL ADSX: I copied the below from the Raging Bull thread. I am hoping that some of you experts will comment on this: >>> They are getting cash from the IPO, $32.3 million. But they are also spinning off their biggest money maker which, unless they do something drastic, will plunge them into a loss for the 1Q 2000. Can't we just agree on that? Their loan/credit line agreement has a covenant that forces them to keep their profitability or risk going into default. In short, ADSX shows one loss in a quarter while the loans are still out there and IBM calls them in, ADSX will have to pay up in a hurry. Unless ADSX can come up with something that brings in the same amount of net profit per quarter as SALE does now things will get ugly come 1Q IMO. Tradesalot>>>

To: Francois Goelo who wrote (19936)	11/26/1999 12:25:00 PM
From: OLD JAKE JUSTUS	Respond to of 52051

ADSX: Wishy Washy! Copied from the Raging Bull >>> ADSX: I never said bankruptcy!!!! There is a difference between going into default and bankruptcy. Going into default would mean IBM would call the loan back and ADSX would have to pay up. But even if this were to happen and ADSX run out of cash, they would have plenty of assets to sell to get cash. There is always the chance too that ADSX could pay back the loan/credit line early and AVOID all this. We'll see how it all works out. Tradesalot>>>