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To: Lee Walsh who wrote (10993)	7/5/1998 12:55:00 PM
From: LastShadow	Respond to of 120523

Watch List 7/6/1998 SYMBOL CLOSE CHANGE CHANGE % BBBY 53.562 0.312 0.59% BGEN 49.625 1.375 2.85% GM 68.875 0.375 0.55% HD 85.875 0.875 1.03% IMNT 16.125 1.25 8.40% NKE 52.25 0.187 0.36% PQT 2.125 0.5 30.77% PSIX 13.25 0.25 1.92% VTSS 31.625 0.375 1.20% Long/Bullish List SYMBOL CLOSE CHANGE CHANGE % FGII 29.875 0.719 2.47% MTIC 9.687 0.25 2.65% PEP 43.687 1.687 4.02% PXD 24 0.125 0.52% SCH 35.125 0.375 1.08% TXB 4.687 0.062 1.35% ZITL 5.219 0.219 4.37% lastshadow

To: Lee Walsh who wrote (10993)	7/5/1998 1:57:00 PM
From: Tx Buck	Respond to of 120523

Good post Lee. I own a small amount of FLTT and it's encouraging to see them move ahead (item #5). However, I have a few questions which I'll direct to you since you seem to be in the best position to provide answers. The unaudited 5/26 financial release lists current liabilities are nearly triple the current assets and most capital assets are pledged. This leaves over $600K in other assets, the majority 1/3 of which is receivables and the rest held for sale. Shareholder equity covers liabilities and 1 1/4 million shares are held in treasury. Where to get financing? According to the 6/10 news release, 3 investors purchased $1.5M in debentures convertible to stock at the price of $4 or the average stock price at time of conversion (whichever is lower) LESS 17.5% to 25% discount! So, at $4/share, these investors can pick up shares at $3 each. These same three will be purchasing another $1.5M in August. Two observations: First, the firm gets its financing and will expand. Though it's leveraged to the hilt like a lot of micros, it's income and growth is good. I personally like the concept and the food, I find the board has a good mixture of experience and talent, and think there is excellent potential for FLTT. Second, the stockholders face a period of uncertainty. Not knowing the terms of the 3 investors' purchase, we don't know when or how much of the debentures will be converted. Are other plays available? For instance, can they sell a portion or all of their holding to other investors who can turn around and convert these to discounted shares, sell these, and have an immediate 33% profit ? ($4/share - 25% discount = $3 -> sell at $4.00 for $1 profit -> $1profit /$3 purchase). There is always that wild card problem...the MMs. If they are somehow able to get their hands on the convertibles and, at the same time, short the stock down (as you indicate they are) then MMs stand to make a much larger profit. This of course would happen over an extended period of time which also means that there would be little resulting move upwards in the stock. With another 1 1/4 million shares in treasury (how much is optioned to insiders and what do they own currently?) plus the ability to tap into the the remaining 40 million authorized shares, one wonders what FLTT's issuance plans are. Do have any thoughts concerning any of this?