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Technology Stocks : SmarTalk (SMTK) -- Ignore unavailable to you. Want to Upgrade?

To: Marc Pierce who wrote (247)	1/8/1999 5:11:00 PM
From: Noblesse Oblige	Respond to of 283

Marc Pierce notes in response to my question about who will infuse SMTK with cash: "Who? Someone who wants quick entry and has a lot of cash on hand." Marc...the business isn't that complicated. And, there is certainly ease of entry. Why else would there already be more than 400 companies operating in the US in prepaid phone cards? SMTK has a mountain of debt in front of common equity, a flawed business plan, severe accounting irregularities, shareholder lawsuits which may well continue for years, and they have burned everyone on Wall Street with an interest in the prepaid phone card business. Cash is used for spendin' or investin'. What you have paid for your SMTK holdings is "spent", not "invested." Whatever money may be brought to the table by a major player will be INVESTED, not spent. And, that means that the current shareholders won't see any of it. Perhaps it will all be straightened out in bankruptcy court, but it is going to be difficult to manage it when someone is going to have to stand up for the claims made on assets by callers who possess shiny new cards but haven't placed their "phone home" contacts just yet. I think you may be disappointed. It is doubtful that anyone is out there to save you. The company announced some time ago that it was seeking a buyer. Since that time, the stock has been cut by 80%. Do you really think that is an accident? Have a good day.