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Microcap & Penny Stocks : Kaire Holdings - $0.50 stock- $3 to $4 Book Value -- Ignore unavailable to you. Want to Upgrade?

To: Baldur Fjvlnisson who wrote (1080)	12/12/1998 3:54:00 PM
From: DADEPFAN	Respond to of 1640

..OT.. Oh No! Fort a moment there, I thought my stomach flu was coming back! Hope it goes away - for good! Dave D

To: Baldur Fjvlnisson who wrote (1080)	12/12/1998 5:29:00 PM
From: Stephen Goldfarb	Respond to of 1640

Baldur: I am sorry that I do not have the details of the acquisition. Your questions are apt. It would be helpful to know how the acquisition dilutes Kaire Holdings present stake. Speaking generally, there were two solutions posed, as we know, to Kaire International's impoverished operations. One was the IPO and the other is the acquisition. The IPO would have raised funds, allowed retirement of certain debts, and gave the company a certain amount of cash to invest in improving operations. The latter was estimated to give the company about a year. The IPO benefit to KAHI was a presumed increase in share value. However, even that was problematical. KAHI had agreed not to sell its stake for two years. Therefore, even if there was an immediate increase in share value, KAHI's stake was still subject to market forces over the two year holding period. Also, the IPO would result in dilution of KAHI's stake. I don't have those figures. It has been reported that Kaire International, in anticipation of the IPO, created a 1 for 2 reverse split. Upon issuance of the shares for the IPO, dilution would have been created for the existing shares. The split, as I understand it, had the effect of increasing the value of the shares to the IPO purchasers. Consequently, it decreased the proportion of ownership to the existing shareholders. The acquisition goes about the rescue of Kaire International in a different, but more direct way. As I understand it, a certain amount of the debt, I don't know how much, will be retired by the debt holders being issued Natural Health Trends stock. The alternate direct benefit to Kaire is that it immediately expands available products and marketing capacity. So it would seem that the beneficial effect on Kaire International would be fairly rapid. These benefits are acquired directly, without the administration of Kaire International having to go out and seek alternate means with the cash that would have been made available from the IPO. The key question, of course, is what effect these material changes in product and marketing availability will have on Kaire International's profitability. On the face of it, it seems to have great potential. I have no way, however, to know whether, or how much, the company will benefit. I don't believe the company does either. That is what will unfold as the benefits begin to accrue in the months ahead. Steve