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Microcap & Penny Stocks : KLOC: wishing on a star -- Ignore unavailable to you. Want to Upgrade?

To: moose100 who wrote (457)	12/31/1998 5:43:00 PM
From: Ashley800	Respond to of 581

Gruber McBaine Capital Has 10.82% Kushner-Locke Stake (KLOC) Newstraders - December 31, 1998 13:45 (NewsTraders.com)-- A group including Gruber McBaine Capital Management LLC acquired a 10.82% investment stake in Kushner-Locke Company (KLOC) and has ownership of 1,012,000 common shares, according to an original Schedule 13D filed today with the SEC. The group said it purchased shares of the company between 5/29/98 and 12/9/98 at prices ranging from $2.74 to $6.99 per share. Los Angeles, California-based Kushner-Locke produces and distributes television programmingand feature films for major TV networks. Copyright 1998 NewsTraders Inc. All Rights Reserved Thursday, December 31, 1998

To: moose100 who wrote (457)	12/31/1998 5:56:00 PM
From: Ashley800	Read Replies (1) \| Respond to of 581

I think KLOC will spin off 1-800-US Search in an IPO. This looks like a similiar situation that NAVR has with it's 80% stake in NETRADIO. Netradio is a drag on its earnings just like 800-US SEARCH is on KLOC. NAVR is IPO'ing Netradio within the next 40 days I think. Sounds like KLOC wants to build up the awareness of 800-US Search, then IPO it so it will have it's own capital to live or die on its own. Kloc winds up with a big stock holding in 800-US SEARCH, which if it's IPO is big will carry KLOC stock (see what happened to MALL when it IPO'd UBID). And Kloc on its own books returns to profitablity because it no longer has the expenses caused by 800-US SEARCH. I owned MALL and NAVR (soon to buy back in) and I own KLOC. DKA From the earnings press release (bolding - mine): "The Company's 1998 fiscal results were adversely affected by the inclusion of results from its Internet-related subsidiary, 1-800-U.S.SEARCH. In November 1997 the Kushner-Locke Company obtained 80% control of 1-800-U.S.SEARCH, a leading provider of fee-based people search and other customized individual reference services. Since the acquisition, the Company has consolidated $7,869,000 of revenues and over $2,800,000 of net losses attributable to 1-800-U.S.SEARCH. The Company's selling, general and administrative expenses for the fiscal year ended September 30, 1998 increased $8,005,000 (199%) over the fiscal year ended September 30, 1997, principally due to the inclusion of $6,658,000 of advertising and administrative expenses of 1-800-U.S.SEARCH. 1-800-U.S.SEARCH's $4,747,000 of advertising was strategically placed on the Internet (including InfoSpace, Lycos, Switchboard and Infoseek) and on syndicated television programming (including "Wheel of Fortune" and "Jeopardy"). 1-800-U.S.SEARCH's monthly revenues have increased from $213,000 in November 1997 to $835,000 in October 1998. Its Internet-sourced revenues have increased from 4% to 40% of monthly totals during that period. The Kushner-Locke Company announced last week the completion of a private placement of 1,200,000 shares of common stock. The Company netted $5,673,000, which will be applied primarily to facilitate the continued expansion of 1-800-U.S. SEARCH. "During the past four years Kushner-Locke has continued to expand its core entertainment, film and television distribution businesses," stated Co-Chairmen Peter Locke and Donald Kushner. "We are pleased to have exceeded last year's revenues and the comparable fourth quarter's revenues while starting two new businesses. We formed a new Latin American film and television distribution operation, KL/Phoenix, and through KL/Phoenix launched our first satellite television channel, Gran Canal Latino throughout Latin America. We also acquired 1-800-U.S.SEARCH and ramped up its operations to take advantage of the explosive growth in the Internet. In doing so, 1-800- U.S.SEARCH accounted for approximately 10% of our revenues this year and almost half of our net loss."