Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : Cade Industries -- Ignore unavailable to you. Want to Upgrade?

To: Chartgod who wrote (3344)	11/13/1998 4:07:00 PM
From: Hunter Vann	Read Replies (2) \| Respond to of 3563

I'm believing to think nobody cares anymore.... :o)

To: Chartgod who wrote (3344)	11/16/1998 9:48:00 AM
From: Jack Ucci	Read Replies (2) \| Respond to of 3563

Item #5 of the 10q deserves discussion. There's the possibility of some impact on the stock price until it gets resolved, one or more quarters in the future. Here it is. Comments? During the third quarter, the Company became aware that modifications designed to reduce certain acoustic emissions at an engine test facility sold by the Company's Central Engineering subsidiary ("Cenco") to General Electric Aircraft Equipment Services ("GEAES") in Cardiff, Wales for delivery in April 1998, had failed to achieve contract specifications. The original acoustic design and installation work had been performed for Cenco under subcontract by Boet Stopson, a French company which filed for protection under French bankruptcy law in early 1998. Cenco has provided certain remedial work in an attempt to bring the acoustic emissions within contract specifications, but the initial remedial work proved insufficient to achieve contract specifications. Cenco is obtaining estimates of the cost to remedy the acoustic emissions problem from engineering services believed to be reliable. Subject to completion of a letter agreement, Cenco will reimburse GEAES for certain costs incurred by GEAES in connection with the interim use of alternative test facilities prior to the time the Wales facility becomes operational, which is expected to be June 1999. The Company's estimate of total cost for completion of the remedial work ranges from $6.0M to $7.5M. The Company believes that these costs are covered under a policy of insurance guaranteeing the design and installation work of Boet and by warranty and other reserves established by the Company. Boet has asserted a claim against Cenco in the French bankruptcy action and Cenco has filed an arbitration claim against Boet in England. It is not possible at this time to estimate the extent of Cenco's liability to GEAES, the actual costs of modifications to the facility, or the outcome of the French bankruptcy or English arbitration proceeding, although the Company believes that up to $8 million of insurance proceeds should be available to Cenco for the costs of modifications to the facility. Jack