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Technology Stocks : Enterprise Informatics -- Ignore unavailable to you. Want to Upgrade?

To: Greg h2o who wrote (2921)	12/4/1998 11:48:00 AM
From: jackhach	Respond to of 13797

Greg, Just buying for higher net worth clients that have a capacity to dabble in these issues. Otherwise, your warnings are well said. I have cautious optimism about ALTS -- despite some of my more "rose-sided" musings. Assuming the technicals on EB are accurate. The product should sell well. The most pressing problem ALTS faces is one of cash and exposure. They, I'm told, are working on both via a joint arrangement with a biz partner. In fact, ALTS is doing the pursuing I'm told. That is, ALTS may actually be acquiring the other company. This can only be done in one of three ways (as I can think of.) 1) ALTS has secured financing from creditors/biz partner to make an acquisition and to stabalize their own present financial state. Paying down/off demand/current debt and replacing it with longer term debt. A simple REFI of sorts. 2)The company that ALTS is to acquire has cash-borrowing capabilities, and ALTS is simply bringing them public through an acquisition and using the credit facilities now indirectly acquired. This is not easily done, and can only be done if the company is "truly" private and has no "in place" restrictive loan covenents needing to be addressed. 3)ALTS raises funds publicly through another offering/printing more stock (ARGHHHHHH.) This last one seems unlikely at this point. I sure hope not. This would have to go to a shareowner vote I believe. I cannot see what would be gained by ALTS current creditors calling their respective notes. A liquidation/bankruptcy declare would bring them very little. The money, for them, is in a M&A or possible loan rewrites. Again, as I see it, The company has not shot all its bullets (like most bankruptcy candidtaes) and is know looking around for ammo. They got the ammo -- they just need to buy/borrow a gun. SINCERELY, ANY IDEAS OR COUNTERPOINTS MOST WELCOME... -JH