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Technology Stocks : Data Race (NASDAQ: RACE) NEWS! 2 voice/data/fax: ONE LINE! -- Ignore unavailable to you. Want to Upgrade?

To: Marshall who wrote (25594)	11/14/1997 1:50:00 PM
From: VALUESPEC	Read Replies (2) \| Respond to of 33268

Reagarding the importance of a BANK loan as opposed to a somewhat obtuse private placement, it is as follows: Banks, or anyone else, will only lend you money if they are almost certain to get there money back. If a bank, or anyone, lent RACE moeny, that would mean they felt BT sales would take off very soon (along with other reasons). Also, the more favorable a private placement is, the more likely one can assume the company is likely to survive. The harshest terms are left for the riskiest companies. An 8% interest rate is high, but not rediculous for a struggling micro-cap. Now, just how unfavorable were the terms of the recent $ 5 mil placement? Really, we don't know. That is what Drakes and I are complaining about. If it was good, they would have given more details, in all liklihood. Diluting the shares, somewhat vague private placements, and more shorting all spell more trouble for RACE. Maybe you've never followed a company that has gone down this road before. I'm speaking from experince about what is likely to happen with RACE. Maybe it won't. Maybe RACE will beat the odds- but RACE not going to pennies a share someday is the longshot at this point. I don't expect to change my outlook on RACE until significant, large dollars are spent on actual purchases of Be There ! Affiliations with billion dollar companies, etc., won't do it. It is the mode of operation for a sinking micro-cap to announce "affiliations" with large companies. However, sales are all that count at this point and BT sales are so far behind now that the existence of the company is now in jeopardy.