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Microcap & Penny Stocks : ABTX - Agribiotech -- Ignore unavailable to you. Want to Upgrade?

To: david cameron who wrote (7023)	2/1/1999 11:49:00 AM
From: Anaxagoras	Respond to of 8359

There is a fine cautionary tale about busted rollups (of which ABTX is a fine example, IMHO)in Herb Greenberg's column today on TSC. ABTX is not mentioned, but many of the points made are applicable, IMO. The URL for subscribers is thestreet.com A relevant snippet (the bracketed comment is mine): <<Five percent is hardly what Wall Street expects from a growth company, and such paltry growth is what often happens to rollups after the merger music comes to a halt. That's why short sellers are drawn to rollups like Family Golf, funeral homes and even used car lots [ummm, how 'bout forage and turf?]. They're usually more of a trade, on the hype, than an investment on the future. They tend to be greater-fool theory types of investments. To keep the story going requires a steady stream of acquisitions; Family Golf's target is 30 acquisitions a year over the next two years. But there are only so many golf ranges, funeral homes or used car lots that can be acquired (which is why Family Golf is now branching into the exciting world of ice rinks.) And such ambitious acquisition strategies require a bottomless pit of money and repeated trips to the bank. >> Fare thee well, Anaxagoras