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

To: Questerr who wrote (343)	4/27/1999 12:01:00 AM
From: lifeisgood	Read Replies (2) \| Respond to of 418

Qesterr, Excellent work. I wonder why, with the company trading below book, and given consistent earnings, ALU is not more concerned with a possible takeover. Market cap is only 58.5 million. Pocket change for the likes of Wayne Huzienga. Again, great DD. You included all of the questions I wrote down to ask him when I call. I concur re: your assessment of David S.. He seems to be an honest, hard-working business man. When I last asked him a question concerning shareholder value, he reminded me that he was one of ALUs biggest shareholders and that he was thus very focused on shareholder value. If FC eventually goes public for 500 Million, that's 65 million that may be passed out to us (that's $10/share) as a dividend. The momentum traders will soon be out of this stock. They bought with the hope of getting rich quick. If ALU had gone public, it would have just been a flash in the pan anyway (stock surges on IPO announcement and falls off a cliff after it prices-- e.g., DBCC). I'm willing to double my position in the current price range and had huge orders in today that never got filled (8.25, 8, 7.75). I may end up paying more but I'm confident in ALUs business plan. To date, I've never erred in buying a profitable company below book value (DIGI, VLSI). Each has resulted in at least a double in 6-8 months. I think this one has potential for much better than that long term. The best time to buy good stocks at a great price is when most everyone else wants to sell. Good luck to all... LIG

To: Questerr who wrote (343)	4/27/1999 6:45:00 AM
From: Linda Kaplan	Respond to of 418

What a wonderful report. I am very grateful to you for your work, and I do feel quite reassured about my stock, even if it is at a big loss right now. Ugh. Next time you talk to him, suggest an appearance on CNBC. I recall their being interviewed there long ago. It gives good public relations, IMO. We stockholders can also write CNBC requesting they interview ALU, as there's a new feature based on requests. Is there a poison pill? If not, we need to suggest they get one pronto, if we're really trading this far below book value. Otherwise we'll be in a bad position, like one of my other stocks recently, to get a lowball buyout attempt. Linda

To: Questerr who wrote (343)	4/28/1999 6:55:00 PM
From: Timoteo	Respond to of 418

All: to me it has been very clear all along that Allou was being conservative and focusing on building and expanding their core business. What David S. didn't say but was very clear to anyone investing in the company and not the stock, was that 4 years from now is eternity in the internet world. FC might be worth 1 billion or might be worth nothing, but the drain on the core business would not be sustainable. I saw it happen years ago with Y2K companies, where insiders were more concerned with the stock price and hype than with the company-do a 4 year chart of ZITL for example to see what I mean. ALU has played it the opposite way, because its core shareholders are not internet traders who go hot and cold. I agree that the AMEX listing has been a curse. With some solid quarters ALU could easily be a $25 to $30 stock on NASDAQ. Also, because they deal in consumables, they will benefit cyclically from any downturn, as investors look to safe stocks. Best, Timoteo