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Technology Stocks : ALU - Allou Health & Beauty: Another Web Play -- Ignore unavailable to you. Want to Upgrade?

To: RockyBalboa who wrote (330)	4/24/1999 7:53:00 PM
From: Questerr	Read Replies (2) \| Respond to of 418

I will let everyone know Monday evening how my conversation with David goes. I suggest anyone else who would like to voice their concerns, consider calling the company at 516-787-1312. Someone help me with the math. Co. says "Subdury group and other investors" acquired a controlling interest in FC for $37.5 million - of which Allou has rec'd $19 million. Does that mean the rest $$ is forthcoming or did Jacobs sell their approximate 15% stake for the rest? Could that have been a requirement of the Subdury group - getting rid of all the other investors except the token part that would have to be reserved for the ALU shareholders? If the extra $18.5 million (37.5 - 19) was paid to the Jacobs et al for their 15%+ stake - could FC have been valued at around $100 million? (I know this isn't likely given ALU has a mkt. cap of $62 million). If not, why do they later say in the press release that the $19 million will increase the company's book value - resulting in a 28% increase in shareholder equity, with no mention of where the $18.5 million shows up on the balance sheet? If it was paid to ALU as a note, wouldn't it be recorded as an asset, and carry through to shareholder equity? Or is it treated separately, applied against carry forward losses on FC? Any help or thoughts? Trying to figure out what we as shareholder are keeping percentage-wise in FC. If we did get $37 million. Then we own the rest of ALU for $25 million - and still a small (unfortunately too small %) in FC. From a value perspective, not an internet play perspective, the company seems well-poised? Has $300 million in sales ($3 million from FC) - and an adjusted market cap of $25 million. After taxes this company has been generating net earnings of close to 1% of gross revenue (not fantastic), but still gives us a sub-10 P/E. What does the value investor, to some degree in all of us, think about that?