Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: R. L. Chapin who wrote (27143)	4/6/1999 1:33:00 PM
From: heronwater	Read Replies (3) \| Respond to of 122087

Could someone kindly direct me to Flodyies post on Kiski Prep? I would like more details on what exactly is going on up there and the connection to CYOE. Thank you.

To: R. L. Chapin who wrote (27143)	4/6/1999 2:09:00 PM
From: Clayleas	Read Replies (6) \| Respond to of 122087

<CYOE: If I had to guess I would bet that the school has no idea that they even own the stock> They do now. I have just sent the following email to the school's head master, John Pidgeon. Dear Mr. Pidgeon: I noted in a document filed with the Securities and Exchange Commission (SEC) yesterday by Alan J. Andreini, that The Kiski School owns over 1 million shares or roughly 9.6% of a company called Coyote Network Systems. You can find that document at the following link. freeedgar.com I am writing you this email because it is very unusual for an institution like yours to have such a large position – roughly $6 million – tied up in such a risky investment like Coyote. I hope you have been fully informed of all of the risks involved with this company. Let me point out just a few along with their references.  Coyote's latest quarterly report (Form 10Q) filed with the SEC on Feb. 16, 1999 is available at the following link: [link deleted for this post]  The 10Q contains a section on page 5 titled: “Recent Suspension of Trading in the Company's Common Stock”, which is very interesting reading. The series of articles referred to in that section and which led to that trading suspension were published in The Street.com and can be found at the following link: thestreet.com (you may need a subscription to access the articles).  The 10Q also contains a section titled “Liquidity and Capital Resources” on page 12. This section contains the following paragraph, which is a big concern: At December 31, 1998, the Company has a negative working capital of $3.9 million. The Company is currently in the process of seeking to raise funds through debt and equity financing to resolve its immediate working capital issues. In addition to an immediate need, the Company will need significant funds to fund its future operations and acquisitions already contracted for and other acquisitions. Management believes that it will be able to continue to fund its operations and acquisitions by obtaining additional outside financing, however there can be no assurance that the Company will be able to obtain the needed financing when needed on acceptable terms or at all. In addition, any future equity financing or convertible debt financing would cause the Company's shareholders to incur dilution in common stock holdings as a percentage of the total outstanding shares.  Coyote has announced two current acquisitions, one of which is Systeam S.p.A. The 10Q makes the following statement on page 12 about this acquisition: Under the Systeam acquisition agreement, the Company is obligated to pay $3.5 million by March 18, 1999. The Company is currently seeking to raise funds to meet this obligation. However, if the Company in unable to obtain the funds by March 18, 1999, the Company may ask Systeam to extend such date. There can be no assurance that an extension will be granted and this agreement maybe terminated, which could have a material adverse effect on the Company.  Coyote, on February 18, 1999, announced that it had received a commitment for a $10 million loan to finance working capital and fund two acquisitions. biz.yahoo.com However, Coyote did not reveal the source of the loan nor did it state that the commitment is “firm.”  In a press release on March 25, biz.yahoo.com Coyote announced that it was extending the critical March 18 date mentioned in the 10Q for the Systeam acquisition to March 29. The release also contained the following sentence: The Company plans to finance the acquisition with the proceeds of its loan commitment; however, such proceeds have not yet been received and there can be no assurance that they will be received.  Even though the extended date has passed by more than one week, no further word has come out. Mr. Pidgeon, I am not writing this email to solicit any action on your part, but rather to bring to your attention certain facts about Coyote Network Systems that your institution, as a substantial investor in this company, should know. In my opinion, The Kiski School's entire investment in Coyote is at significant risk. I recognize that your opinion may be different. You, as a prudent man, should carry out your own due diligence into this company and take the actions you deem to appropriate. In the interest of full disclosure, I will tell you that I currently hold a small short position in this company and would benefit if the stock price were to fall. Sincerely yours,