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Gold/Mining/Energy : Derlan (T.DRL) -- Ignore unavailable to you. Want to Upgrade?

To: thomas gentry who wrote (101)	12/17/1998 9:33:00 PM
From: edward harris	Respond to of 319

You are basely correct on your annalyiss of Derlan. Derlan is basely a venture capitalist firm. The gamble here is , can they obtain above book value for the divisions they are attempting to sale to reduce debt. The reason the stock is hammered , they sold approx. 10 M shares to the mutual fund industry plus market float over $4 during 97 and early 98. Mutual fund end year dressing and tax loss selling is depressing the stock price. Their semiconductor division fell on hard times which was promoted as a growth industry which also lead to a stock premium. Is Derlan a leveraged turn around company?

To: thomas gentry who wrote (101)	12/17/1998 9:59:00 PM
From: edward harris	Respond to of 319

Assumming Derlan is left with their Aerospace , Pump division and 50M in debt. What is a fair market value? 150 -- 250 m . At this stage they become highly focused and a takeover target.