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I read it hurriedly but it didn't strike me as an outstanding opportunity. They did say that 1995 was exceptionally good and 1996 was coming off that hihg. They invested big $$ in getting good deals on excess inventory production from mfrs. and used up a big credit line in doing so, more or less. They have gambled tha tthe reduced cost of this inventory will translate into better profit margins at some point in 1996 and that may be correct but it seems to be a gamble on their part.
An offshore investor purchased a Convertible Note which, if converted into Class A stock, could dilute eps upon conversion. Presumably that Note wouldn't be converted unless earnings were good and theprice of the stock appreciated nicely - but it does reflect a risk of eps dilution.
That's the most I could make of it for now. Probably not interesting enough (for me) to do anything unless and until it works down the inventory number which could translate into excellent profits - IF management took a prudent step in buying up that inventory and used up the revolving credit facility to do so. If the credit facility gets called and they don't have the cash to pay it, big trouble for TAIT. IMHO.