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To: Ron McKinnon who wrote (15259)	7/13/1998 12:14:00 AM
From: DanZ	Respond to of 53068

LTCW. I may have found the reason why intangible assets increased $23 million from January to April 98. Here is an excerpt from the company's Form 8-K dated June 12, 1998. On April 2, 1998 (effective March 1, 1998), the Company purchased all of the outstanding shares of Common Stock of Cellular Warehouse, in exchange for $19.9 million in cash, including acquisition costs of approximately $884,000, and 550,000 shares of the Company's Common Stock. The value of the 550,000 shares was approximately $7.6 million, based on the Company's March 1, 1998 closing stock price of $13.75 per share. The fair value of net assets acquired, including approximately $3.6 million allocated to acquired residual income, was approximately $7.1 million. The purchase price exceeded the fair value of the net assets acquired by approximately $20.4 million, which amount will be amortized on a straight line basis over 30 years. I assume that they accounted for this on the balance sheet as an intangible asset. It's going to take a few quarters to see if LTCW overpaid for this transaction. Dan

To: Ron McKinnon who wrote (15259)	7/13/1998 12:41:00 AM
From: DanZ	Read Replies (1) \| Respond to of 53068

More on LTCW. The two founders of LTCW, Nicolas Molina and Brett Beveridge, filed a Form 4 with the SEC last Thursday, July 9, 1998, in which they disclosed direct sales of the stock. It's pretty obvious that they confided in each other when you look at the dates of the sales, the number of shares sold, and the price of the trades. June 11: Both sold 2,000 shares at 17 5/8 June 15: Both sold 1,000 shares at 16 June 16: Both sold 7,500 shares at 15 June 17: Both sold 2,500 shares at 15 June 18: Beveridge sold 74,000 shares at 14 7/16 June 18: Molina sold 5,000 shares at 14 7/16 June 19: Beveridge sold 0 shares June 19: Molina sold 69,000 shares at 14 3/8 In total, each of them sold 87,000 shares and now hold 842,965 shares. I'm sure that the ambulance chasing lawyers are going to pounce on this soon although it doesn't change my opinion on the stock since it has already fallen to $5.