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

To: equalizzer who wrote (820)	1/14/1999 7:30:00 PM
From: OFW	Read Replies (1) \| Respond to of 1530

Thanks for all you do for the thread, Equalizzer. I assume that upcoming proxy materials will explain all of the details and procedural matters. One question for you, assuming shareholder approval of course: Through whatever process I assume we will tender our Avalon shares to AHS for conversion into prorated shares of AHS. But, since AHS is a privately held company, in what form do we receive shares? Are they a traditional certificate? Since AHS is non-trading, do we hold those certificates in a safe place (safe deposit box,etc) since I would think that no broker will hold them? As you can see, I am somewhat confused as to exactly what form our new share ownership in AHS would entail. Appreciate any clarification you might be able to provide. Offie

To: equalizzer who wrote (820)	1/14/1999 7:36:00 PM
From: wombat	Read Replies (1) \| Respond to of 1530

lizzerd You forgot to subtract for illiquidity. We are talking about the little stock investor right? What good is this deal beyond something less than .11 cents if the rear end IPO specifics AREN'T indentified.

To: equalizzer who wrote (820)	1/14/1999 7:37:00 PM
From: Eric Fader	Read Replies (1) \| Respond to of 1530

Thanks EQ, I thought I understood the concept but your explanation put a slightly different spin on it that was very helpful. I've been telling people privately all day that any lingering doubts that anyone has about AHS or the proposed transaction should disappear entirely once they receive the proxy materials. As far as I'm concerned, any company that is willing to spend the requisite time and money putting together a transaction like this one, and jumping through the legal hoops associated with it, is not interested in a "minor" success. Large expenditures of time and funds imply big goals and the possibility of big rewards.

To: equalizzer who wrote (820)	1/15/1999 5:06:00 AM
From: Catfisher	Respond to of 1530

<<In AVAL's case the debt may add several pennies to the value of the deal. When you also factor in the cost of the warrant call you could be adding 5 to 6 cents to the value of the deal.>> Is the implication here that the funds for purchasing the warrants and assumption of debt is coming from AHS? And if this is the case, has this not already been factored into the 8 to 1 conversion ratio under consideration for Avalon shares into AHS? I guess what I am asking is, is it reasonable to anticipate that if the final valuation of Avalon is 25 cents, then on a conversion basis of 8 for 1, the final valuation of AHS would be (8 x .25), or around $2.00? Cliff

To: equalizzer who wrote (820)	1/15/1999 9:33:00 AM
From: Jon Matz	Read Replies (1) \| Respond to of 1530

You wrote: "The assumption of debt issue in most cases means that the value assigned to the transaction is as follows. 1. Value of shares outstanding multiplied by .25c. 2. Value of debt divided by number of shares outstanding is then added to the value of shares to give a real price being paid." I would think that this means assets = .25 per share then you would subtract the company debt. For example: 1. Number of shares outstanding multiplied by .25c. 2. Subtracting cost of debt divided by number of shares outstanding. This includes cost of warrants and all corporate debt including unpaid back wages. Is this wrong?