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Technology Stocks : Hide & Seek - The Copy Protection Solution -- Ignore unavailable to you. Want to Upgrade?

To: IPOJunkie who wrote (523)	8/5/1998 6:22:00 PM
From: Enam Luf	Read Replies (2) \| Respond to of 690

More on HST Ok, here are some new things i found out.... First, solutions similar to the mastered defect version have been around for a while and never took off for a number of reasons. One, the progress of recording technology can keep up with these type of solutions pretty quickly, and the price on that type of tech is coming down rapidly... To paraphrase his words... if this solution became prevalent, you'd likely see CD recorders that can compensate for the defects in short order. Also, the location of the defects can be detected and replicated (fed into the computer) by software.... creating an all purpose hack that would all but disintigrate any notion of security. Second, the polymer "key" solution would be harder to duplicate, but could also be circumvented using a similar technique. However, he liked the photosensitive polymer approach in general and saw a large potential market for it... especially in the CD Rom and DVD arena... However, another thing he pointed out is that major software developers (high volume, mid to low end software) would be unlikely to use this type of technology unless 1) very cost effective (less than $1) and 2) the disk mastering process was comparably efficient (time) to current disk production methods...

To: IPOJunkie who wrote (523)	8/7/1998 3:42:00 PM
From: Chloe R	Read Replies (2) \| Respond to of 690

IPO, I had to go back almost 20 posts to find you. What's up? WELL, HERE IT IS: Yesterday, HST and the Halter Financial Group (HFG) executed a letter of intent!!! Before you get too excited and start running to do due diligence on the shell you have to know that HFG does things a little differently. ALL their shells are owned by them and have been cleaned by bankruptcy. The statute of limitations has also expired on each. So, they are essentially commodities - good clean shells; can't get cleaner. The agreement is therefore with HFG, not a specific shell. Halter keeps up the audited financials but chooses to not have its shells trading and reporting in order to prevent the fun and games that typically occur on the shell side (sorry, Peter!) Therefore all the paperwork, requirements, and attorney opinions are in order for a fully-trading, fully-reporting company but they choose to hold it back in order to put together a deal without front-running potentially messing it up. It's a very professional approach but doesn't give anybody any arbitrage opportunities. I would imagine that the shell is one of those listed on the HFG website at halterfinancial.com I guess we'll have to wait for a full announcement to get all the details, but this is the short of it: The deal involves no cash. This is becoming very rare these days. Most shell providers are simply shell brokers who want to take the cash and run. HFG is quite different. They want to be a long-term partner with the companies they facilitate reverses for. They usually only deal with companies that have established earnings in the multi-million range. HST is the execption, having been identified as possessing tremendous upside potential. HFG is covering its bases, though. The merger is contingent on the $1 million financing being completed and $1 million in firm orders being received. The percentage will be average (10% or so). But considering no cash is involved this looks like a very good deal with a very reputable company. We're moving along.... Clo