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To: drakes353 who wrote (2131)	3/19/1999 9:47:00 AM
From: drakes353	Read Replies (1) \| Respond to of 2506

Oh, bother.... PCTY at 2 1/4, down 5.

To: drakes353 who wrote (2131)	3/19/1999 11:01:00 AM
From: Q.	Read Replies (1) \| Respond to of 2506

Drakes, PCTY does look interesting. Looks like the co. is basically an unguided missile, with rapid growth and bad financial controls. It's clear from their announcement that they are likely to join the 'e squad'. What isn't immediately obvious to me is whether the co. has any other serious problems. Noticing that they are a franchiser, I first wanted to see if they were doing anything like Einstein Bagels was doing, in lending their franchisers lots of money. It doesn't look like they are doing that. Then I looked at their general liquidity situation. I computed the "Altman Z score" Subject 26586 for the company and got a value of 1.98, which indicates they are at risk but not in any immediate peril. To me it looks like their biggest immediate threat is the one that is identified in their news release that you gave. By not being current in reporting, they will not be in compliance with the covenants of their long term debt. However, I think the risk of the lenders suddenly pulling the plug on long term debt are not very great. Meanwhile the valuation of the stock does not look too high, based on a comparison to other companies in the same retail industry: yahoo.marketguide.com

To: drakes353 who wrote (2131)	5/11/1999 10:57:00 PM
From: RockyBalboa	Read Replies (2) \| Respond to of 2506

This appears to be another EQMD...you were right. How would they stay listed if the nasdaq wants them to be in compliance (1998 report) way earlier than they will be able to make preparations in order to complete the 1998 audit? biz.yahoo.com Nasdaq Changes Status of Trading Halt in Party City Corp. and Requests Additional Information from the Company WASHINGTON, May 6 /PRNewswire/ -- The Nasdaq Stock Market(SM) announced today that the trading halt status in Party City Corporation (Nasdaq: PCTYE - news) was changed to ''additional information requested'' from the company. Trading in Party City Corporation (Nasdaq: PCTYE - news) had been halted on May 6, 1999 at 8:47 a.m. EDT for News Dissemination at a last sale price of 3 27/32. Trading will remain halted until Party City Corporation has fully satisfied Nasdaq's request for additional information. Also see: biz.yahoo.com "The Company has been unable to complete its 1998 audit, in part as a result of the difficulties associated with determining its inventory position as of December 31, 1998. In order to complete the audit, the Company must take a new physical inventory, which the Company expects to take place at the end of June. The Company anticipates that the audit will take approximately ten weeks following the completion of the physical inventory. The Company has been advised by the Company's independent public accountants that it is unlikely that they will be able to issue an audit report on the Company's 1998 financial statements, although the accountants' final decision on this issue cannot be made until the audit is completed. If the independent public accountants are unable to issue an audit report for 1998, the Company intends to request the accountants to audit its financial statements for the period from January 1, 1998, through the month in which the new physical inventory is completed. There can be no assurance that the physical inventory will be completed as currently scheduled. The Company also announced that it has retained Zolfo Cooper, LLC, a nationally recognized consulting firm, to assist the Company. As previously announced, the Company is in default of Nasdaq's continued listing requirements. The Company has received a notice of delisting from Nasdaq, which the Company has appealed. The Company expects to attend a hearing with representatives of Nasdaq on May 27. There can be no assurance that the Company will be successful with the appeal, or that the shares will continue to be listed on Nasdaq." -------------- IS.com