To: steve who wrote (4617 ) 10/29/1997 9:01:00 PM From: Buck Read Replies (2) | Respond to of 26039
BOOM!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! Great day folks, lets have a lot more. I re-read the Sylvan Release and to me it says initally we are billing Sylvan for installation, maintenance and support in all their locations. The equipment is a different story. It appears on the outside that as our part of the deal, we may be supplying the machines. Sylvans' part of the deal,would be to make their locations available. Of course there may be some kind of deal to use a leasing company or something that is not showing now. Or we could be paying them rent on their locations and they could be paying us rent on the machines. Any way you cut it, we are going to be placing a substantial amount of machines around the country and probably China. Again, just my guess, but I would say this will be a rush deal. I can't see Sylvan saying to it's customers, "Get on a plane and travel to Illinois!" They will want this in all their centers fast. Most importantly, our name will finally be on the deal along side of Sylvan. Also, this is a commercial, public venture that quiet the analysts worries about so much of our business being tied into the D.O.D.! It may take the analysts a couple of days to figure out all the details, but the bottom line will be a strong buy on the stock and the hard fact that we have just reaffirmed ourselves as the Biometric leader in an exploding market. Being in business myself has taught me that when your business is expanding rapidly and orders are pouring in, cash is pouring out. I would imagine that the next couple of quarters could still reflect the earnings that Kessler has predicted because of these outlays. However, the street can see through the cash outlays and the stock will continue to rise until after that infrastructure is in place, then Boom! See you in Cabo!