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Technology Stocks : ALU - Allou Health & Beauty: Another Web Play -- Ignore unavailable to you. Want to Upgrade?

To: Tom Hua who wrote (122)	2/3/1999 11:13:00 PM
From: Alan Lee	Respond to of 418

Zacks says this about the institutional ownership: Institutions 49.39% Insiders 1.67% Insider ownership doesn't mean much, of course, as this is class A common, and management controls the company through the class B common. 49% sounds like a lot to me, but I haven't looked at enough similar numbers from other companies to make a meaningful comparison. When I read the edgar filing from December I keep thinking floorless convertible. Anyone else interpret it this way? I don't see this as a bad thing in the long run, but it seems to me the owners of the warrants from this stock placement would benefit greatly from a decrease in price, since the number of shares they will get seems to depend only on the price for the _x_ days before the date they can exercise (I forgot the details). Without knowing more about the details of the deal, it's hard to say much more. There would clearly be no advantage for these shareholders to stay short through the IPO (and probably not through the earnings next week, but that's less clear because of the interest cost of the huge debt that ALU has, plus internet and IPO expenses, etc.). I've owned this stock for almost a year and will wait out whatever happens for at least a few more months, but I can't help but think there is something we're all missing here. Even without an IPO, though, there doesn't seem to be much long-term downside, as long as they can deal with the debt problem.

To: Tom Hua who wrote (122)	2/5/1999 3:09:00 PM
From: Susan G	Respond to of 418

I am long ALU. I think it is down because all of the momentum players that hopped in hoping for a runup with PRFM have left. All of ALU's great press releases have been on very downmarket days or on the day of all the bad PRFM PR. Do you beleive that guy released ANOTHER PR today on PRFM? When ALU announces the IPO, it will fly - as long as the market is not tanking that day! Their PR dept. will have to learn WHEN to release their announcements. Timing is everything. The lawsuit from Estee Lauder is hurting, too.