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Technology Stocks : JMAR Technologies(JMAR)

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To: henry jakala who wrote (4531)12/18/1997 10:45:00 AM
From: Paul Franklin   of 9695
 
Thanks Henry. You have to think JMAR knew of the strong possiblity and eventual reality of shorting against the box. A small growing company has to raise capital and a secondary offering is better than increasing debt IMO. I think these offerings are often bought up by foriegn investment for tax and legal reasons and 1 reason must be to allow shorting against the box. Management had to know this would happen. Now I feel they will do nothing to help the stock price until after the warrants expire if they truly don't want dilution. The only wild card is they cut the offering short confident they can raise extra capital with the warrants in Febuary. One good press release or a new analyst coming on board could drive the price to 5 in a couple weeks or less.
Paul
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