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Technology Stocks : Lanier Worldwide, Inc (LR) - Digital Document Management -- Ignore unavailable to you. Want to Upgrade?

To: Walter Morton who wrote (60)	9/11/2000 7:45:01 AM
From: Kathleen capps	Read Replies (3) \| Respond to of 72

I've got a major position in LR and glad to see the recent uptick. Long term, I think the price will go much higher but I kind of overextended myself position-wise in LR and am currently planning to take some profits at 1 3/8 - I have to think about that for a while. Still no word on voice sale. Interesting post from yahoo. Re: Lumpsterpress... by: ThePourMan (35/M/Rollywood, NC) 9/8/00 7:33 pm Msg: 2639 of 2648 The debt situation is not as dire as it appears. From what I can tell, $200-$250 mill has been securitized to leases. The company has paid down over $80 mill of principle since the spinoff, which is nearly $1.00 cash in just premiums alone, not including interest. There is some shorter debt (I believe around $200 mill loan) that is being paid down rather quickly, which makes the premiums high. The Voice unit sale proceeds, say $150 mill, will be used to further pay this down. So look at the short term future. LR has $650 in debt, but back out $150 mill from the Voice sales plus another $25 mill from payments, and they'll shortly have only $475 mill, which means they paid down 39% of their debt at spinoff in one year. At least $250 mill of the debt will be securitized to the lease payments. That leaves only $200 mill of unsecuritized debt. At this time the shorter term debt will probably be gone, which means the required debt payments should be dramatically less. LR will either continue to pay down debt over the next year (another $100 mill), or start booking that cash as earnings, hoping to increase leases to securitize the remaining debt. My guess is the later which means probably 0.65 of that dollar in earnings being used for debt to the bottom line, meaning LR could easily have "earnings" of $1.00 within the year. Even Squasher/OJ thinks a PE of 15 is reasonable. At this time, the company will probably then look to make an acquisition, using the 1 bill revolving line as the source of cash and going back into some debt. I imagine the banks are afraid to extend them long term cash for an acquisition at present, due to the current debt load and cash required for it's maintenance. BUT the very fact that LR HAS a 1 bill revolving line means the banks aren't as concerned as the investors are. ____________- Another good message is Number 2648