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Skip, well I've quickly learned that you seem to be the guru on this stock. I'm still trying to do my research on TPRO before I buy. Please explain this to me: Ren Cap carried over 3 mill in convertible debentures. On their second round of conversion, they renegotiated the conversion price DOWN from $2.25 to 1.50, to equal the conversion price of their first round. Why would the company agree to that , when the stock price was more than double their conversion price at the time? Is this just a sweetheart deal to Ren Cap since they will in all likelihood pump in more cash in the future? Also, when you say you expect to see a .45 EPS, how many shares outstanding is that based on? They currently have 11 mill plus. Seems to me that they could easily have 15-17 mill in 6-12 months, given warrants, future conversions of debentures, options, and the immediate need to raise more capital. Do these guys have more than about 1.2 mill in cash, or am I reading things wrong? Don't you feel that this company has just a tad of a cash flow problem, and if not, a bit of a dilution problem? Also, why would the CEO of the company sell 7,500 shares at $2 on 5/28/97? The only reasonable explanation is that these were expiring options, if he has been there for at least 5 years. It's just hard to imagine that he couldn't have renegotiated any options that were expiring, and what a horrible message to the public for the prez to sell at such a low price, if he is a firm believer in the potential appreciation of the stock he manages. |
