The main reason that I'm in WAVX is due to the persuasiveness of DooWopGuy and The Mav, two posters that I met on the Yahoo ELCO thread, of all places. I didn't know jack about high-tech (still don't, really), but I was at least smart enough to judge who did, and there was no doubt that these guys were and are brilliant (too bad that The Mav rarely posts).
At any rate, I thought the following post from DooWop was right on the money, as usual:
By: DooWopGuy
Reply To: 150264 by Ralphgoldberg Thursday, 2 Mar 2000 at 5:11 PM EST
Post # of 150516
Ralph [re: funding]
IMO, and I'm not a securities analyst - just a bit twiddler - this is extremely healthy financing. It does some very positive things. First, just in terms of magnitude, it is a statement that Wave is a player: $122 million is serious money. Second, it dresses up the balance sheet so that an analyst's research report can say, "...and they have adequate cash in the bank to cover two years of development at the current burn rate." Third, unless we're all incredibly stupid and/or dense, the investors know exactly what we do about WaveXpress, Cyber-COMM, and TCPA. I think PGE would have to aggressively seek out short-side players to bet against that line-up. Fourth, this comes on the heels of major security breaches and concerns about the safety of e-commerce transactions as they head quickly to $ trillion levels. This isn't a sector to be betting against. Finally, I don't believe there are any convertible kickers here that would lead us into death spirals or anything of that nature.
I think today was very natural "buy on rumor, sell on news" trading, and we could see a little more downward drift in the next several days. I believe we're in a quiet period until the S-3 registration, but that should happen a lot more quickly than the S-1 we had to file with last year's private placement. I doubt that any firm to whom we would have been talking would want to be short when we come out of the quiet period - which is why I say that PGE would almost have to have been looking for someone to screw us.
Like the MetaMarkets OpenFund, I took some profit elsewhere today and bought more this morning. I'm down on those shares, but not worried.
As usual, JMO - DooWop |
