Wind River going up, up, up! Message Board

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Technology Stocks : Wind River going up, up, up!

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To: GuinnessGuy who wrote (1780)	8/20/1997 8:17:00 PM
From: Ramsey Su	of 10309

Craig, I think a lot of these convertibles (not going to use the S word anymore) are great for companies such as WIND. Think of the alternatives. Credit instruments from the big banks are unavailable to WIND. Not enough cash flow history and collateral. How about just a corporate bond? More than likely it will receive a "junk" rating from S&P and other rating agencies. How about issue more shares? This is the certain kiss of death with immediate dilution. Iomega did that last year and diluted their shares to a point that they never regain the momentum. What is left? The convertibles gave the issuing company a cheap loan today and if the holders' convert, it will be at tomorrow's price. I am not a corporate CPA type and would very much like to hear comments from a CFO. May be the Treasurer of QCOM would care to comment. Ramsey

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