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Non-Tech : Aura Systems-Hot stock to watch now! -- Ignore unavailable to you. Want to Upgrade?

To: CuriousGeorge who wrote (18)	11/25/1997 10:12:00 PM
From: leigh aulper	Read Replies (1) \| Respond to of 28

Curious, nice post, but this thread is dead--please use the other aura thread

To: CuriousGeorge who wrote (18)	1/30/1998 11:15:00 AM
From: MarieS	Read Replies (1) \| Respond to of 28

1) The stock is being pressured by a warrant arbitrage which is being abused by the holder i.e., short the stock and drive the price down and cover in the open market when Joe Retail panics and if the stock goes up convert the warrant and cover the short with no risk -- some things never change. 2) AURA sold NWCM in an IPO last September and realized a gain of $9.8 mil which is a below the operating line accounting entry. 3) Rather than show this gain in Q3 and have potential house clearing writeoffs in Q4 they took above the operating line writeoffs and added to reserves to offset the gain in NWCM. 4) When Q4 ends on Feb 28, 1998 if the various reserves AURA set up in Q3 to offset Newcom are not necessary they will flow back through the income statement as profits. 5) So the "operating loss" was really a conservative move by AURA to smooth out the normal ups and downs of a company with products that are going from the development to commercial stage. 6) These who have sold their stock on the "operating loss" story as exaggerated by Mr. Evans on Bloomberg, did so in haste -- some things never change.