Roger's 1998 Short Picks Message Board

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Strategies & Market Trends : Roger's 1998 Short Picks

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To: Kevin Podsiadlik who wrote (14631)	10/15/1998 3:49:00 PM
From: Jonathan Babb	of 18691

Equity lines - I just did a search for companies with "equity lines". The following matched the search (and may possibly have equity lines): ANGN CFON DERM DYNX GENZL NEOT REFR ZILA "Equity Lines" provide a mechanism for selling stock without going through the traditional secondary IPO protocol. In some cases the stock is sold in a private transaction to an intermediate offshore party who then flips the stock for a 7-12% "commission". You can suspect this is happening when you read a document that describes an investor in the company as a "selling shareholder". The companies essentially pre-register the shares so that the "investor" can immediately dump the shares if they so choice. Just as in the convertible case, when you read the Yahoo profile you will never be able to figure out how many shares are actually outstanding. With volumes lower now that the bull market has subsided, this is emerging as an alternative to convertible financing. Jon

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