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.

Technology Stocks : Avalon Group, Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Jon Matz who wrote (794)	1/8/1999 10:43:00 AM
From: equalizzer	Read Replies (2) \| Respond to of 1530

Eric is correct that valuation is almost impossible to determine. The management of both companies have to build a business plan that shows future potential and increased shareholder values. With the nature of the markets as they are factors that clearly come into the picture are: 1) Valuation. Difficult. 2) The new management team. Structure and association.If the new firm is represented by large law and accounting firms and strong Investment Banking associations, who will support the new business plan then these issues play strongly into the picture. 3) The market the eventual shareholders stock will be traded on. Clearly the current Bulletin Board listing along with shares outstanding and potential future increases in the float from up and coming 144 filings also play a part. If the new stock ends up on a National Exchange with strong investment banker support including analysts reports etc. Then these points play a part. 4) What is the business plan? Where does AHS who have invested $350,000 in this company see the value. Maybe not where some think. For those who decide not to support the merger they will be protected through dissenter rights. The problem in situations where dissent becomes an issue is AHS can back away and go after other targets. What affect might this have on AVAL? This is why the large expensive firms if they are doing the work are very careful to consider all the angles. Also which State is doing the SEC review etc Some are much stricter than others. California and New York are tough. The fact that AHS and Avalon are committing to the cost of this exercise and the incredible work involved says a lot.

To: Jon Matz who wrote (794)	1/8/1999 11:52:00 AM
From: Eric Fader	Read Replies (1) \| Respond to of 1530

Hi Jon -- Yes, absolutely, the valuation data will be in the proxy statement, along with all sorts of other information on both Avalon and AHS including share data, information on management, etc. I think you're also mostly correct on the timing comments. Preparation, revision and finalization of the legal documents, including the proxy statement, should take at least a week but less than two weeks. The printing will take only a couple of days, and the mailing a couple more, but then you add USPS delivery time, plus the time it takes people's brokers to process and re-ship it to those for whom shares are held in street name. Assuming that the attorneys have already started work on the proxy materials, it looks to me like we should be receiving our packages the last week of January. BTW, for those who have wondered about the approval vote, I calculate that "AVAL management," including AHS for this purpose, owns approximately 5.3 million of the current 13 million shares outstanding. This does not include shareholders of Avalon's subsidiary, ISI, who received 6.2 million shares at the time of Avalon's creation in 1997. So that leaves only about 1.5 million shares in the float, of which we on this thread own just shy of 1 million. The above information reflect AHS's recent purchases of a total of 2.3 million shares.