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

To: Bo Le who wrote (202)	2/16/1999 10:56:00 AM
From: Bo Le	Read Replies (2) \| Respond to of 418

Cut my ALU holding by half at $12. Here is my fear: f.com loss $3,164,936 for the past three month. J family provided $3 million to f.com and got 18% f.com ownership. Since f.com revenue is growing really fast (and the more they sell online, the more they lose, just like AMZN), it is really possible f.com will lose $6 million plus in current Q. If J* family to cover the f.com lose again and play the conversion game again, then by the end of this Q, ALU shareholder ownership in f.com could further be reduced to under 40%. Unless J* family make it clear that ALU shareholder ownership in f*.com will not be further reduced, ALU is a wait and see in the dark. Just my two cents. BL

To: Bo Le who wrote (202)	2/16/1999 11:05:00 AM
From: Tom Hua	Respond to of 418

Bo, Mr. Herman Jacobs told me their equity in fragrancecounter from the $3 MM funding was about 15% , without checking for precise number at the time, which is now known to be 17.6%. It's very common, and in fact standard, for a private company (in this case fragrancecounter.com) to fund its operations through private placement prior to taking the company public. It's a strong vote of confidence that the Jacobs family are willing to provide the financing with their own money. Think of it this way, as ALU shareholders, we're getting a large percentage of a fast growing e-commerce company for free. Regards, Tom