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Technology Stocks : Research Frontiers (REFR) -- Ignore unavailable to you. Want to Upgrade?

To: Jonathan Babb who wrote (1025)	10/8/1998 5:17:00 PM
From: CMason	Respond to of 50149

Jon -- if the product fails then there will not be any cash left, so your numbers are questionable. They will be raising some cash from Ailouros, issuing more shares, and spending that cash. So we really can't tell from here. Unless you are planning to take over the company, I don't see why you would be willing to pay 5/8. You may be correct that if they launch the product it will require cash. My implicit assumption is that, if they've waited 34 years to launch the product, its introduction may not be as imminent as some have stated. However, I should have stated that the offer of 5/8 is for a limited time only, is valid only if a minimum of 50.1% of shares outstanding are tendered, and is subject to cancellation without prior notice. A launch may in fact not require much of a cash investment, as many licensing deals I'm familiar with require the licensee to provide the necessary expenditure. I don't know what REFR's license agreements require them to do in the event the product launches. The section on "risk factors" in the S-3 is so opaque (pun intended) that it covers any possible outcome without providing any disclosure. Interestingly, it's virtually the same boilerplate they used in the 3/27/98 10-K, which stated "based upon existing levels of expenditures, assumed ten percent annual increases therein, existing cash reserves and budgeted revenues, the Company believes that it would not require additional funding for at least the next three years." This gets us back to the tiresome question of why the dilutive deal with Ailouros six months later. Longs should be aware that, at current prices, the Ailouros deal would represent over 20% dilution if the full $15 million were put to Ailouros, and this percentage will increase rapidly as the price skids. Your suggestion to Lawrence is a good one, although I would be looking for a floorless convertible preferred with no restrictions on shorting, rather than a fixed-rate convertible. Regards, CMason

To: Jonathan Babb who wrote (1025)	10/10/1998 9:04:00 PM
From: lawrence smith	Read Replies (1) \| Respond to of 50149

thank you for your advice. since you mentioned in your previous post that you are not familiar with this technology, then i will discard your advice entirely. and since mr. mason's experience with this company is even less, i will continue to laugh at his suggestions. you know, you really have to laugh at someone who shows up to bash a company that he knows nothing about, and then on his first post on this subject kindly invites someone who has been on this subject for well over a year to not post again. just wondering mr. mason, why you felt it appropriate to mention that you drove a mercedes? are you trying to impress someone out there? do you know what hankuk has been doing in the last year? or what is now called vision ease? i know what msc is doing. i have some pretty good friends there for whom i have done some pretty big favors.i get some pretty good info from them, as anyone who has been following this board and yahoo know by now. the following is from a letter dated sep 30,1998 that i received from them. "dear larry. ive received the airline ticket and i want to thank you for your kindness. it was a pleasure working with you and it would be wonderful if all customers were like you. as it is our goal to always provide complete customer satisfaction, it was rewarding to hear that you were pleased with the service that you received from our company. ive enclosed our new brochure and a copy of the article featuring our company. if there is anything you need in the future, please feel free to contact me . regards. d.s." this person is the customer service manager-industrial products. that is just a small sample of what i receive in the way of info from them. just thought you would like to know. everything they have told me has been very upfront, very accurate, and well corroborated by other sources. your posts, mr. mason, are not quite comparable now, are they? so, who should someone believe? someone like you who says that he drives a mercedes and has never lost money shorting companies like this,(really now, never lost money? i guess i could say that the last two companies i bought like this were msft and dell. how is that for hype?) or the folks at msc? you know, the people who work with this type of product introduction all the time, tell me the efforts that they are putting into this, and tell me how well the progress has been, and who tell me how fabulous this is going to be. not too hard a choice now, is it?