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To: Captain Jack who wrote (5719)	4/21/1998 2:59:00 AM
From: P. Ramamoorthy	Respond to of 10786

John - I am not so worried about authorization for more shares. As JDN pointed out, it is only authorization, not dilution yet. At the current price they will be shooting themselves in the foot if they try to make a secondary offering or attempt private placement or make an acquisition. Analysts need to know that ALYD is thinking seriously about life after year 2000, and taking steps. Stocks will be need for many purposes: (1) employee stock options to keep their key employees (2) provide for shares for split. SYNT and companies with high earnings growth split for broader investor participation. As long as share price keeps moving up after splits, investors gain (capital gain). It is better to get it approved now along with other proposals at the annual meeting because they do not have too much between now and year 2000. (3) for acquisition purposes. It's true that they can pay cash for acquisition or finance it with debt (bonds) or equity (shares). Equity financing is cheaper. The higher the share price, the fewer shares they need to use for acquisition. They know this. That means they will wait until their earnings potential is proved CREDIBLE and consequently the share price goes higher. To save the cost of acquisition they can do a stock swap like CBSL did with Claremont. That type of acquisition may save taxes and other expenses. They know the company being acquired should have earnings and cash so that ALYD shares do not get diluted with debts. In short, I'm glad that ALYD is taking all the steps to make it a viable enterprise after year 2000. These actions tell me that they are also quite aware of investors' anxiety to see 1Q98 numbers. 45 days to file 10Q? That would be May 15. Do they conference calls? Ram