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Technology Stocks : Coyote Network Systems (CYOE), Mixing It Up, IP and ATM -- Ignore unavailable to you. Want to Upgrade?

To: Bruce A. Thompson who wrote (122)	2/18/1999 6:30:00 PM
From: Bruce A. Thompson	Read Replies (3) \| Respond to of 360

Is there anyone out there who can offer up an explaination as to how CYOE can get this good a deal? I'm looking at 1/4 over prime, 5 year payout, no shares, no converts, no warrants???? To a company under SEC investigation, with a Death Spiral Floorless holding their balls in a vise, who is giving away product to anyone who will sign without even the simplest of credit checks. I want to meet the money people. I have this idea for an island resort.............. BT

To: Bruce A. Thompson who wrote (122)	2/18/1999 6:37:00 PM
From: Bill	Read Replies (1) \| Respond to of 360

How many times do you see a release like that where the lender is not identified? Usually only if it's Big Al's finance company. Perhaps management should increase their life insurance if they fall behind on payments. :-)

To: Bruce A. Thompson who wrote (122)	2/18/1999 7:08:00 PM
From: Q.	Read Replies (2) \| Respond to of 360

There must be more to this loan than indicated in this announcement. Banks look for cash flow to cover loan payments and assets to collateralize. The cash flow simply isn't there in the latest financial statements. There is simply no way that a bank would give them this kind of loan for general corporate purposes. In the past CYOE has used gimmicky financing tactics, such as issuing stock and warrants to a third party (Comdisco) in order to have the third party take the risk of financing a sale of equipment to an untrustworthy customer. There might be a gimmick in here, too. The language of the announcement says they didn't issue warrants and that the loan is not convertible into common stock. But there must be something else to compensate the financier for the risk. Perhaps they simply issued some shares to the lender? Maybe they got a third party (like Comdisco) to guarantee the loan by issuing more shares to the third party?