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Technology Stocks : Lodgenet Entertainment -- Ignore unavailable to you. Want to Upgrade?

To: DanZ who wrote (6)	3/23/1998 1:42:00 PM
From: Tokyo VD	Read Replies (1) \| Respond to of 79

Dan, You are kidding, right? As I previously stated, director or insider buying can be a positive sign, but it doesn't mean that everything is peachy. LodgeNet has defended themselves in this lawsuit for quite some time at a cost of $1 million per quarter. As for your balance sheet question, the quarter and the year results were released one month ago. If you read the wire release, the cash position as of December 31st is at $1 million and Long-term debt increased by almost $4 million. That means that by year-end the company had run out of money and had already dipped into its bank line. If you look at the cash position over the past twelve months, you'd see this company burned through $87 million. That is terrific if you own the property or are provided regional protection like a cable company, but these guys are at the whim of the hotel proprietors. Hotel properties change hands regularly. Therefore, you have to hope that your competitors don't have a strong relationship with the new proprietor because LodgeNet would have no recourse. BTW, Tim Flynn bought shares in November at $12.13. He obviously hasn't been right in the short term. Tokyo