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To: Ken Ludwig who wrote (15650)	2/11/2000 7:47:00 AM
From: Dale Baker	Respond to of 118717

Disregard the penny status now and look at their recent results: "MeltroniX provides electronic manufacturing services including surface mount, chip-on-board, and mixed assembly microelectronic design, manufacturing, and testing capabilities. For the nine months ended 9/99, revenues fell 65% to $6 million. Net loss from continuing operations totaled $2.8 million, up from $820 thousand. Revenues reflect decreased shipments to the Company's largest customer. Net loss suffered from lower margins due to product mix changes." They just returned to positive net worth, but the Yahoo profile shows negative cash flow and $184K cash on hand. They are working in a competitive, low-margin business. Did you notice they just registered 2.3 million shares for stock options? That is more than 20% dilution for a business that is barely getting by. And they played with the books by converting debt into preferred stock, $9 million worth. That is another several million shares they will have to issue eventually. "All accrued interest expense associated with the Company's Subsidiary Guarantee Obligations (as that term is defined in Note 6 hereof), approximately $28.6M of debt and accrued interest at September 30, 1999, has been eliminated as of October 15, 1999 as a result of the Company's conversion of the debt obligations represented by the Subsidiary Creditor Obligations (as that term is defined in Note 6 hereof), including all interest accrued with respect thereto, into shares of the Company's Series A Convertible Preferred Stock ("Series A Preferred Stock"). See further discussion in Note 6 hereof." A lot of under-$2 stocks are cheap for a very good reason - they have lost their value. I wouldn't buy this company at any price right now.