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Re: imgonnagetusucca post# 600

Thursday, 02/16/2006 10:44:55 PM

Thursday, February 16, 2006 10:44:55 PM

Post# of 1885
IGGYS-To finish my reply....As far as cash flows they are keeping that info pretty close to the vest. I believe I have some pretty credible information on the subject, but I would prefer to not publish that just yet.

I will say that the revenues are something north of 170MM. If you could clean up the past issues with all the fees and penalties the business is fairly solid. The fourth quarter was a little more of a challenge on the revenue side, but I assume some of that to be seasonality.

I can't get confirmation if the IRS has been paid in full...but I can say payments have been made. To Jack's point...if the company didn't have the burden of the lawsuits they would command a pretty significant price for the business.

I am of the opinion that this baggage is helping us right now, as I believe it detours a sale and the shareholders are better off if a sale were to happen better than a year from now. We first need change of control so we can get the right kind of activity relative to solid business decisions that will drive profitable organic growth.

Then we need to reduce debt, or restructure the terms to limit the money being pissed away. Final focus would be to develop a sound acquisition strategy that better positions the company for the next 3-5 years. Now we have a sale or merger that beats the 50 bagger like a red haired step child.

Why

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