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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: StockDung who wrote (23540)	3/23/1999 8:21:00 PM
From: tool dude	Read Replies (1) \| Respond to of 122087

Oh how I long for the day the famous SI pig shows up on CYOE and the legs disapear and it toples down a hill to .50.

To: StockDung who wrote (23540)	3/23/1999 8:51:00 PM
From: HRAKA	Read Replies (1) \| Respond to of 122087

Floyd, Take a look at SHAL's PR's. Seems smelly to me, what you think? Hraka

To: StockDung who wrote (23540)	3/24/1999 2:10:00 AM
From: Clayleas	Read Replies (2) \| Respond to of 122087

Re CYOE financing. I took a look at the web site for Prinvest prinvest.com, the company providing financing for CYOE customers and noticed that they are a receivables based lender. Interestingly, I saw no mention of lease financing which is what CYOE says they will be providing. For those who do not know what receivables based financing is, they lend to companies such as Wireless USA who, it would appear, has such bad credit and cash flow, that they must rely on the credit of the company's customers to ensure repayment. It is also known as factoring and is one of the most expensive forms of financing there is (so much for the credit worthiness of CYOE's customers). Based on this information, my best guess as to the way this financing will work is as follows: 1. Using the backing of Wireless USA's receivables, PrinVest will finance monthly installment payments to CYOE for the equipment. 2. The difference between the $8.6 million in the press release and the $7.2 million previously recognized is an additional finance charge to be earned by CYOE for this arrangement. 3. I'm going to guess that this financing will run for 3 years with payments to CYOE of $240K per month (it might be longer with lower monthly payments). 4. If my assumptions are correct, this would give a financing income for CYOE of roughly 12% p.a. (the % would be lower for a longer term arrangement). 5. One more thing that is not a guess. If there is any problem with the arrangement such as Wireless USA going out of business or otherwise being unable to make the payments, I can guarantee that PrinVest will not be left holding the bag. CYOE will take all of the risk. All in all, this is not very favorable for CYOE's cash flow and it is likely that a good portion of the $10MM financing announced in Feb. will be eaten up with this.