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Strategies & Market Trends : Mr. Pink's Picks: selected event-driven value investments -- Ignore unavailable to you. Want to Upgrade?

To: Mr. Pink who wrote (7788)	4/19/1999 12:33:00 AM
From: steve host	Respond to of 18998

Already noticed your request to SI and predicted your request - just bookmarked

To: Mr. Pink who wrote (7788)	4/19/1999 12:07:00 PM
From: TRIIBoy	Respond to of 18998

An update on the why VTCH is on the verge of bankruptcy: VTCH analysis from 10-K The company is in the middle of a liquidity crisis as each financing option is taken away from the it. Instead, VTCH as usual must get loans from management. The company's finances are so bad, that when it does try to get money from outside, it must borrow at punitive rates, such as $22 million at 2% per month (for those who are math impaired that is 24% interest rates). It only has $8 million left, but it must borrow at 2.5% to borrow that amount. The real problem of the company is cash. They are simply selling computers to people who obviously cannot afford them or pay for them. That is why DSOs are a staggering 280 days. Part of this calculation must include the $61 million worth of account receivable the company sold to a Cayman Islands bank. The problem is the company is on the hook for that amount should any customers default. This is obviously happening, and if the company does not have cash it must send more A/R over to the bank. In other words, VTCH is holding off this "creditor" by giving more of it's A/R to it, thus generating no cash, while it must pay out cash just to run the business. Also, it can no longer receive anymore money from the Cayman Bank because it is in violation of its collateral agreement. Now, it is frantically trying to renegotiate with the bank. So far to no avail. The real kicker to the company was the devaluation. Assets as of December, pro forma are now worth $42 million less, or $154 million. Yet liabilities declined only $8 million to $85 million. That is because it gets money in reals but owes payables in dollars. So not only are Brazilians not paying it, but also the money it is owed is worth much much less. Not that anyone cares anymore but book value declined a whopping 30% to $68 million just because of the devaluation. So, how does the company go on? Well, it got another $11 million from somebody in April to help fund operations, as the March quarter probably showed an operational loss. And that $11 million will help go pay another debt expiring in which the company has to pay $2 million a month for five months to former convertible bond holders. I also think that the March quarter loss will be big. I think the company's only hope is that a miracle happens or a short squeeze occurs whereby they could exercise a shit load of options and warrants, thus infusing more money. There over 4 million options and half a million warrants. Plus there a bunch of converitble bonds parying to covert and sell. In the end, Vitech is a crappy company, with crappy management, that is currently in a vice and desperately need money. All it can scrounge is short term financing at ludicrous rates. My guess is that by July, either the company raises $20 to $25 million in long term financing or goes under. The big question is why management continues to throw good money into Vitech. But they have defrauded shareholders in the past, so maybe they are playing up to one big end game maneuver.

To: Mr. Pink who wrote (7788)	4/19/1999 1:35:00 PM
From: Paul Butler	Read Replies (2) \| Respond to of 18998

Even scarier is that a 15-year old kid is only 4 bookmarks behind you! Paulie

To: Mr. Pink who wrote (7788)	4/20/1999 2:10:00 AM
From: Doug R	Respond to of 18998

Awwwww, Sorry about that. BTW...did you notice that you've been lower than Doug R on the list going back as far as it's been in existence? Lobbying for a following eh? Vanity, thy name is pink. You may be lagging for the simple reason that I've been able to dial in on every REAL correction and subsequent bottom over the last 3 years. Of course there may also be something more to it than that. Maybe it's because you missed my rec on SOF at 22 (went to 69 in just over a month). Or maybe you missed FRNT at....geez...really low. Or maybe it was PVII at 4. Or possibly AMZN 16 months ago at a presplit 9. Or maybe it could have been CMNT at 4. Or sheesh...ASTN at 1. Or possibly FAXX way back at 2 and a fraction. I could go on. Maybe I will....ULB is only up 30% so far with room to just keep marching higher........ Yikes...I even put forth the embryo for a scan last weekend that yielded 15 stocks up and just 3 down...on Monday. Kinda beats the A/D line by a bit. So...when are you going to attend one of my seminars???....discreetly and anonymously of course. Gee Tokyo Mex is on top...AGAIN. I suppose that list is THE ultimate. heheheh...have a nice week, Doug R

To: Mr. Pink who wrote (7788)	4/20/1999 4:14:00 AM
From: Doug R	Read Replies (2) \| Respond to of 18998

Now see what you did??? I have to post this: techstocks.com which is a follow-up to these: Message 8702387 Message 8977631 Message 8977721 If you can't follow these...maybe you're not applying the word "feeble" properly. Doug R

To: Mr. Pink who wrote (7788)	4/20/1999 11:38:00 AM
From: steviee	Read Replies (1) \| Respond to of 18998

You have my marks Mr. Pink.