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Technology Stocks : Forecross Corporation : Y/2000 -- Ignore unavailable to you. Want to Upgrade?

To: Rick Voteau who wrote (980)	5/8/1998 10:40:00 AM
From: AD	Read Replies (1) \| Respond to of 1654

05/07/98 talked Pat Jones, another 1,000,000 lines signed!! She mentionned EDS as the one who signed up for the contract, anybody wish to call Forecross to confirm should do so. She did say that things are looking up and she feels the momentum is building. AD

To: Rick Voteau who wrote (980)	5/8/1998 10:10:00 PM
From: Richard Moore	Read Replies (1) \| Respond to of 1654

The Q2 results probably won't be released until May 30th but it might be fun for all of you following this thread to guess these results. Lets have a prize for whoever is closest - what do you think? My guess is: Sales: $2.5 million (I am excluding the non cash sales of distributors) Income: loss of $575,000 Cash flow: $900,000 negative Current liabilities: $4 million (there are no current assets since all receivables have been factored) The most interesting number is the negative cash flow which has been funded by a loan from officers as I understand is via a bank loan with Forecross stock as security. The terms of that loan (at 24 percent to Forecross) is by far the most important stat in knowing when Forecross will collapse. My guess, and it's just a guess, that this loan as of May 8 must be more than one and a half million since there is no other way the company can be funding its losses. The security to the bank is Forecross shares. It doesn't take a genius to realize that at some point the bank will reach its limit. When the bank calls the loan, there are two alternatives: 1) the promoters sell their share at mkt to pay off the loan, or 2) they realize on their stock options and again sell their stock to recover the cash. Either alternative results in a huge mkt sell order i.e., over 500,000 shares and cuts off all cash to Forecross. I realize that those out there who promote this stock will not like this conclusion but the most logical result over the next thirty days is: a) Forecross announces its results and the stock drops two bucks b) The bank calls the loan since the security is not sufficient c) The stock held as security is sold in the open mkt d) Any stock options left are exercised above the $1.50 range and sold into the mkt the stock will be around 80 cents in the first week of June Could you pls let me know what's wrong with this scenario? Other than telling me again about the huge opportunity in Y2K or that sales will take off next week (or maybe even 2,000,000 lines of code sold at for some unspecified amount) or for some reason changing where the stock trades (being listed on a US exchange is somehow supposed to make it go up).