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A few voices from our AOL folder...

Subject: ROAD SHOW
Date: Tue, Dec 9, 1997 09:10 EST
From: HReuben
Message-id: <19971209141001.JAA28058@ladder02.news.aol.com>

Ddrifters-

Apparently the road show has been postponed to January(I don't have an exact date yet), until the SEC completes its review of the offering. Even though the SEC review all offerings, I bet the fact that William Speier is the seller here would make the SEC more sensitive, with Speier's attempt to take over VLTS a year ago at $6.50/share. Nevertheless, the review -as all reviews- will be a non-event.

Answers to your questions:
1) The early signs of a potentially successful road show (especially in the case of a small offering such as this) are : a) The number of presentations, in how many cities, the register of attendees, etc. b) The interest from the investment community; c) How the stock performs AFTER the news of the offering.

2) Usually, in the case of a secondary, the offering price is at a 5-10% discount, to entice investors. More often than not, the price does open at the previous close, because the news of a successful offering IS good news.

Let me assue you of something: Nothing will occur with this offering where you'd want a stop-loss. Both Landenburg and GKM are highly regarded firms, and I know that the interest in VLTS is HIGH. So do not worry, as this offering is a NET plus.

==============

Subject: Re: Road Show
Date: Tue, Dec 9, 1997 07:44 EST
From: BubbleBust
Message-id: <19971209124400.HAA25102@ladder01.news.aol.com>


I am not at my office right now, but i believe the new name will be powerhouse techonologies. It was an item on the last proxy.

-bubble
============

Subject: Re: Road Show
Date: Mon, Dec 8, 1997 22:17 EST
From: Ddrifters
Message-id: <19971209031700.WAA16967@ladder02.news.aol.com>

HReuben,
I have a couple of questions about this offering, as I have never owned a stock that has made this kind of offering before.

- What would be the early signs of a successful road show?
- Is there any way to know how it is being received, or is the 1st indicator the pricing on the
18th?
- Once the word gets out on the price, does the market price typically move quickly to
meet the price of the offering?
- From what you've seen in the past, what kind of range for pricing should we be looking
for? Will the shares be offered much below market value do to the size block they are
trying to unload?

I am concerned because I will be relatively incommunicado around the 18th of December. (Oddly enough, I will actually be closer to the company as I will be in Montana for the holidays. However, I will be unable to access a computer, but will have occassional phone access) With the memory of the Wedbush disaster still fresh on my mind, I am trying to determine if I need to protect my position with some kind of stop-loss, in case a wheel comes
off the whole thing. I would prefer not to use stop-losses to try and remotely control a portfolio, but I would definitely be upset if they pulled a Wedbush.

Ddrifters

============

Subject: Re: Road Show
Date: Mon, Dec 8, 1997 21:01 EST
From: DrSmallcap
Message-id: <19971209020100.VAA07317@ladder02.news.aol.com>

Bubble, I didn't even know about the name change. What will it be?

Just shows how much I know. HReuben is the guy you need to talk to.

DrSmallcap
=========

Subject: Road Show
Date: Mon, Dec 8, 1997 01:28 EST
From: HReuben
Message-id: <19971208062801.BAA13216@ladder01.news.aol.com>

The VLTS management will start their road show (a rather impressive one) tomorrow.
It's my belief that they will have a very successful offering (pricing is on the 18th), and the exposure that VLTS will gain during the road show will be a launching pad.

==========

Subject: Re: Bad news for GTech
Date: Tue, Dec 2, 1997 13:05 EST
From: Ddrifters
Message-id: <19971202180501.NAA06508@ladder01.news.aol.com>

RR,

If the contract is put up for bid, then it might turn out to be excellent news for VLTS. Judging from their 16% number, that means that it would be around a $120 million dollar contract, currently producing (with GTK'S margins) around $33 million in operating income. I expect that addition wouldn't hurt our bottom line any.
If the contract is put up for bid, it certainly can't hurt that VLTS is the second largest lottery operator in the U.S. One would tend to think that the odds would be in our favor to win the bid. However, it's in the hands of the lawyers now, so this is something that could take quite a while before we can even tell whether or not we will have a shot at the bid.
In the nearer-term, do you know of any other instances where a racino opened up around the same size as the one opening in March? I'm trying to get a better handle on just how much this can add to earnings and revenues; any previous examples would be extremely helpful.


Ddrifters

==========

Subject: Bad news for GTech
Date: Tue, Dec 2, 1997 11:17 EST
From: RRanney
Message-id: <19971202161501.LAA26772@ladder02.news.aol.com>

I guess it's good news that VLTS competitor GTech is having such problems in Texas. From Today's Wall Street Journal:

"Gtech Holdings Corp. withdrew from the bidding for the Texas Lottery Commission contract and said it would seek to force the commission to honor Gtech's existing contract to operate Texas's lottery until 2002.

The commission said in August -- after months of controversy over lobbyists, gifts and relationships among state employees and Gtech contractors -- that it would seek to rebid the contract for 1999. Gtech, which has a contract through August 2002, had originally said it intended to file a bid.

In withdrawing, Gtech, which runs most state lotteries in the U.S., said it has a "valid contract" and that the commission's request for bids is "fundamentally flawed" and is "designed in such a manner as to harm Gtech while assisting a competitor." Gtech said it filed a lawsuit against the commission in Travis County District Court challenging the procurement.

The commission, in response to Gtech's move, said it has the right to terminate the contract with 30 days' notice for any reason. "Gtech should have embraced, not feared, a full, fair and open competitive bidding process," the commission said.

Gtech, which has run the Texas lottery since 1992, said the contract is its largest, accounting for approximately 16% of its revenue and a higher percentage of its operating profit. If its contract is terminated, the company said, a "substantial portion" of its investment of $38.7 million may be written off.

Testimony in the kickback trial of Gtech's former national sales manager revealed that Texas's former lieutenant governor, Ben Barnes, received $3.2 million in a single year of political consulting and lobbying for Gtech. Gtech later acknowledged that Mr. Barnes received 4% of Gtech's Texas proceeds, after expenses, on an annual basis.
===============
Subject: Offering
Date: Fri, Nov 21, 1997 17:30 EST
From: HReuben
Message-id: <19971121223000.RAA17583@ladder01.news.aol.com>

Today the Company announced that a shareholder who owns 15% of the outstanding in VLTS will be offering his shares for sale. At first glance-when the headline hit the wires- the market reacted negatively, driving the price of the stock down. But when more detail came out on the story, it became clear that this offering is a net positive for the Company for the following reasons:

1) The shareholder in question is a director of the Company by the name of William Spieir, who tried "stealing" the Company at $ 6.00/share more almost a year ago; he was not successful, and ever since he has simply been a nuisance for all concerned. So, Spieir getting out is a NET positive.

2) The offering will be managed by Landenburg, Thalmann and Gerard, Klauer and Mattison, both of them relatively influential firms. So, not only is the offering in good hands, but this is going to mean added analyst coverage of VLTS (GKM covers it but LT& Co. doesn't).

3) The road show which is set to begin in early December will bring more attention to VLTS in the investment comunity.

4) The fact that the Company or any insider is not offering shares at this juncture is a HUGE vote of confidence.

5) The added liquidity in the shares will mean added institutional interest.


Therefore, This offering should be (and already is) viewed positively. I urge everyone to strongly buy VLTS up to the $13 level.

Good luck
HR
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