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To: JDN who wrote (5707)	4/20/1998 5:39:00 PM
From: Captain Jack	Read Replies (2) \| Respond to of 10786

JDN--- You are correct ALYDs performance does suck and why Gruder or anyone would think dilution will help for any reason is crazy. I believe he is crazy like a fox and will announce good earnings to boost the stock price a little before the meeting. The herd almost never votes against the company especially when the price is rising--- so he stands a great chance of pushing this through. I have not bailed yet as I agree it is too early,,, but that may change if he does not have something positive by the end of next week-----

To: JDN who wrote (5707)	4/20/1998 6:20:00 PM
From: Jeffrey S. Mitchell	Read Replies (1) \| Respond to of 10786

Re: Secondaries, Private Placements, Dilution, etc. OK, let's set the record straight. First of all, CEO Gruder was interviewed by the Charlotte Observor today on this issue so we should shortly be able to put this issue to rest "officially". As for now, it is my understanding from talking to the company that they are not going to do a private placement. So speculating about how that might hurt the stock price from this point on would be a waste of time. As for a secondary, the company might need to do this and thus wants to have the available shares -- but -- before they can even seriously do anything they must 1) get shareholder approval to increase shares, 2) sign on with an investment bank to do it, 3) prepare and file all the necessary paperwork, and 4) choose an appropriate time. Thus, the earliest ALYD could possibly have a secondary would be August. ALYD is increasing the number of shares to 50,000 because they hope the price gets high enough in the next few months that they are "forced" to do a split. This would leave 10,000 shares leftover as leverage to buy a much larger company than they could afford with just cash on hand. This is just good business sense. The hope is that the acquisition would be accretive to more than offset the dilution. So, there you have it. A non-issue for at least the next several months. - Jeff