SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Wind River going up, up, up!
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: GuinnessGuy who wrote (1766)8/20/1997 12:20:00 PM
From: Tiger   of 10309
 
If you look back at the Fool article/link you posted, you'll see the real cause for the alarm about some Reg S deals - the bad ones are equity offerings done at a discount (usually 15-20%) to the current share price. The offshore investors are usually/sometimes restricted from selling their shares for a relatively short (up to 60 days) time. As an investor, I'd clearly be unhappy in a dilutive case like this.

The WIND situation is different - the Reg S buyers are getting the same deal as the normal investors - a 5% coupon with a 25% conversion price premium to the stock. These are relatively standard convertible terms for a company like WIND.

Why is some being sold as Reg S? That's the question to ask. Maybe it has something to do with the tax status of the investors - maybe their money's offshore and they don't want to be taxed by Uncle Sam's IRS.

If this were a fly-by-night company desperate for cash, I would understand the uproar, but this is a quality company with excellent prospects.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News