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Technology Stocks : Avalon Group, Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Jon Matz who wrote (288)	2/24/1998 2:27:00 AM
From: Eric Fader	Read Replies (1) \| Respond to of 1530

Jon (and the other skeptics, friendly or otherwise) -- I think I am the "attorney who posts on the thread" that Chad was referring to above. I've spoken to Bernard only 3 or 4 times, and the 52-minute call (there's a built-in clock and timer on my phone so I can bill my clients efficiently for telephone calls... I'm a health-care and corporate lawyer but Avalon is not a client [g]) with him on Saturday was the longest one we've had. It took awhile because I grilled him at length on the contents of their Rule 504 (private placement) disclosure document, which includes the company's business plan as of June 1997 and a detailed history of the company and its predecessor entity. BTW in some aspects of the business plan they're behind (notably, with respect to the acquisition they're currently struggling to finalize), and in others they're ahead of schedule (e.g., with respect to the construction of an actual functioning kiosk). As has been pointed out, Avalon does not have an investor relations firm at present, and Bernard has recently started reading this thread. He is happy to talk to us, schedule permitting, because he recognizes, quite properly, that Chad and Madly, and I to a lesser extent, have been performing many of the functions of an IR company. We all post here frequently, I think we all understand the company and try to keep others informed, and we have all introduced friends and colleagues to the company. If I may presume to speak for all three of us, I know for a fact that NONE OF US HAS RECEIVED ANY COMPENSATION FOR OUR EFFORTS TO SPREAD THE WORD ON AVALON. I have a significant number of shares, given AVAL's OTC-BB and non-reporting status, and stock price appreciation will be my reward if I have correctly evaluated the prospects of the company and Bernard's ability, but I hold nowhere near a number that will either affect the company's governance or change my life, even if the stock price goes to $5.00. (My overall basis is around .27 or .28.) I have tried to be honest in my posts, and in my personal discussions and correspondence with people I've told about the company, because most of them are my friends and I want it to stay that way. There's a core group of 8 or 10 aggressive microcap investors who know me and trust me, as I know and trust them. Some have bought the stock, some will never buy it and have told me they're not interested in hearing anything further about this particular speculation, and some have told me they will wait to see a news release and then reevaluate the company as an investment. AVAL is one of six OTC-BB (or equivalent) stocks, all priced under $1.00, that I've held, in varying amounts, for several months. It's probably the most speculative of all, but I am quite comfortable with it right now. BTW, two of the other five have appreciated over 100% over the last two months (one is up 200%), a third is up over 20%, and the jury is still out on AVAL and the other two. I expect doubles on at least 5 out of the 6, ultimately. Last thing -- regarding Bernard's truthfulness -- over 14 years of legal practice, I have had many opportunities to recalibrate my internal "BS detector." It is almost inconceivable that he could be lying to me. I've made a lot of money on small "home run" stocks, generally microcaps, by taking the word of enthusiastic and truthful management personnel. Where I've lost money ("so far") has usually been with companies whose management was well-meaning and truthful, but erroneously believed they had sufficient "horsepower" to get the job done. We won't know for sure about Avalon's management for some time, but I'm betting on them.