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Strategies & Market Trends : CAVALRY'S SHORT BUSTERS - MAGIC EIGHTBALLS PICKS -- Ignore unavailable to you. Want to Upgrade?

To: Due Diligence who wrote (1221)	10/20/1998 10:33:00 AM
From: Due Diligence	Read Replies (1) \| Respond to of 1637

From AREE Thread: Interesting AREE tidbit- This may account for the recent uptick in price and volume. In reading an 8-K filed for Travis Industries in May of 1998, I came accross some interesting info. Upon the change in control from old management to new management, new management was awarded a 20 million share block. This block was to be reduced to zero if three conditions weren't met. If any one condition wasn't met they lost 1/3 of the shares they were granted, thus if none of the three conditions were met they would lose the entire block. One of the conditions was that they introduce at least one acquisition candidate to the company consistent with the new agressive sports market concept by November 1. That gives them until the end of the month to introduce an acquisition or they lose nearly 7 million shares of stock (currently worth $77,000) This means they have nearly an $80K incentive to introduce an acquisition candidate by the end of this month. This means we may get a juicy PR soon with a letter of intent to acquire a new company. This can only help the stock price. Maybe this is why we have seen some renewed life in AREE in the last few trading days. Here is an excerpt from the 8-k: - The 20 Million shares were issued subject to the agreement that all or a portion of the shares would be returned for cancellation upon the expiration of six months from the May 1, 1998 Effective Date, if one or more of the following benchmarks were not achieved by such time: - One-third of such shares will be returned for cancellation unless new management completes a strategic and business plan for Travis' overall corporate direction; - One-third of such shares will be returned for cancellation unless new management establishes a wholly owned subsidiary of Travis and transfers all operating assets of the direct mail advertising business to such subsidiary, together with a written strategic operating and business plan for such business and bringing such business to the break-even point for at least one continuous month; and - One-third of such shares will be returned for cancellation unless new management introduces at least one acquisition candidate to the Company or either of its subsidiaries consistent with the strategic plan to be developed immediately. RCJIII