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Non-Tech : Hvide Marine HMAR - High Growth, Undervalued -- Ignore unavailable to you. Want to Upgrade?

To: Thomas C. Donald who wrote (245)	2/2/1998 7:33:00 PM
From: Grommit	Read Replies (1) \| Respond to of 547

Did you happen to ask about their 1998 revenue projection if no additional acquisitions are made, and was the available line of credit at $70 million? Anyone recall from the Conf call? (I think my revenue estimate of $360-370 million a few days ago is in the ballpark, but would certainly like to get a confirmation.) ............. I did not mention it before but HMAR could always continue the acquisition pace by issuing shares directly to the acquired shareholders. So we have: 1. use cash flow & line of credit. 2. have a lower $ amount secondary offering as an interim step 3. issue stock to the acquired stockholders 4. or stock recovers and the $300 million goes ahead in full With #2, there's not much dilution difference to issue $300 million at $31 as compared to splitting it with a $100 million at $20-25 real soon plus $200 million at $35-$40 later on. With #3, since the sector valuations are down at present, any acquisition target would be less costly. But you'd be paying for it with lower value HMAR stock. Down the road you would pay more for the target, but would use higher value HMAR stock. Probably have to issue the same number of HMAR shares in either case, in theory. Make sense?