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Technology Stocks : Data Race (NASDAQ: RACE) NEWS! 2 voice/data/fax: ONE LINE! -- Ignore unavailable to you. Want to Upgrade?

To: Alan Edgett who wrote (29229)	7/27/1998 6:26:00 AM
From: drakes353	Read Replies (3) \| Respond to of 33268

Alan: Yeah...and amazon is appropriately valued at 2x the discounted value of estimated cash flows beginning in the year 2001 (assuming they quadruple sales between now and then). Stranger things have happened with Goodwill Drakes...we're not talking assets, obviously. Stupid things happen so something stupid could happen here, hmmmmm. Unlikely. This would only happen because of buyer demand, which I don't personally think will manifest, but if someone wanted the patents and tech to integrate with their system for some reason, I think RACE could probably charge them $4-5/share. Absurd. No one, no one, no one is going to give RACE $56 - $72 million for a technology that's generated around $500,000 in revenue in the last 18 months. Do you really think they'll pony up with another dilutive deal? Yes, read the Liviakis deal. He gets 1% of any new financing he sets up. There will be a new deal, soon. Who on earth would give them $5 mill now for 2.5 million shares of a stock that would most certainly return to the depths of Chap.11 upon an announcement, before conversion could take place? There are dozens of funds willing to give companies money as long as they can flip shares for a guaranteed profit. It would take RACE more than six months to work through $5 million, ample time to get the conversions done. I don't know...you certainly have more experience than I with these deals, but that kinda math gives me a headache. I think the only sensible thing is the announcement of someone buying the company outright to infuse cash (maybe a tender at $3-4)? Nonsense. A dilutive, lay-up deal and a rapid fire string of press releases implying that prosperity is around the corner is the most likely scenario. They might try to play up the remote access patent thing. Raise some cash, use it to go sue 3Com for a crazy amount of money, make this into a lawsuit play. Could also do the "large RACE shareholder as BT product buyer" thing you've mentioned in the past. There are lots of ways to generate interest in the stock temporarily, problem is there is no way to interest people in a product they don't want or need. drakes353