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Microcap & Penny Stocks : Pacer Technology (PTCH) -- Ignore unavailable to you. Want to Upgrade?

To: David K. who wrote (393)	3/24/1998 1:49:00 PM
From: victor gupta	Read Replies (1) \| Respond to of 726

To All: I heard about a new treatment to prevent salmonella in chickens. Does anyone know how this affects Pacer's Rectite possibilities? Is anyone still thinking about it? Victor

To: David K. who wrote (393)	3/26/1998 10:30:00 PM
From: Machaon	Respond to of 726

Here is a note from the Yahoo BB, which has a very active Pacer thread. Any comments? <=================================================================== I also happened to talk to CFO, Bob Cavazos, at PTCH today. I read the entire 8K last night or the purchase agreement. I had a few specific questions for Bob. His responses: 1) The amount below book value as I calculated it was about $1.5 million...... Bob said they took total assets and reduced by $500,000 and then paid 72.5% of remaining book. They are not going to adjust PTCH book upwards however so that's about a dime a share more than it will appear to be in future financial reportings. The higher amount would be considered true replacement cost. There will be no goodwill amortized which I really like. 2) On the negative side if any, there will be one time acquisition costs as they move equipment, etc. to other PTCH plants during the next four months while they lease from the seller. Earnings will not be accretive (can't remember if that has one or two c's?) for the next 3-4 months but will after that. The pro forma to be released on or before 5-18-98 will give us a truer picture. 3) The radio interview was given 3-12-98 in conjunction with the Phoenix show and they did have a booth and presentation at the show as well as I stated before. The 21 minute interview was outstanding and even mentioned another acquisition not mentioned before to my knowledge concerning a small epoxy company they purchased for further vertical integration. 4) They did get the licensing for Oleg Cassini and Brut! So, long term I think we have a winner but as I warned in previous messages, the next quarter or so could have the sales but not earnings as they combine Cook Bates into their operation. I plan to buy more on any major weakness. I see $2-3 in next 6-18 months. I wouldn't be surprised to see $2 if a newsletter picked them up for an update or recommendation. Good luck to all. Dan in FW ===================================================================> Regards, Bob