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Technology Stocks : Nam Tai Elec. (NTAI) -- Ignore unavailable to you. Want to Upgrade?

To: Dick Martin who wrote (1541)	2/8/1999 4:55:00 PM
From: Ron Bower	Read Replies (1) \| Respond to of 1696

Dick, As I see it - Presume Albatronics goes into bankruptcy. Where do you find buyers in Asia? How much would the creditors receive and when? Namtai has paid $10M for 50.1%. They now control the company. If in bankruptcy, they can outbid on any portion they want to own and let the rest go. They wanted and got the customers and the sales. The creditors are between the proverbial rock and hard place. Namtai makes them an offer they don't want to take because it's far less than the amount owed, but it might be more than the amount they would get from liquidation (cash in hand without legal and other costs). If they don't agree, Namtai folds Albatronics and keeps the customers. Meanwhile Namtai transfers the business to their own operation. Paid $10M for $300M in customer revs. If they keep half of it, good buy. Another side - management knows that this announcement will depress the stock price. They still have almost 600,000 shares left on their last buy program and will probably put out another for 1M. Koo will also have an excuse to buy. With a .34 EPS, there's a good chance NTAIF will get down to the $6.00 area held up only by BV. At some point the company will step in and so should investors because the bad news is in THIS report. Look for a sudden 1999 turn around. JMHO, Ron