I had a very pleasant conversation w/Nancy, IR @ SGI. Very nice lady. I felt really bad afterwards for using the phrase “beating the crap outta the price “, early in my conversation…:o)
Anywho, my main reason for calling was to get their line on the OS/Float. To the best of her knowledge, the numbers of 35.4/31.2, stand, as of 31 March. Atlas Transfer, their TA, (801) 266-7151, has been instructed by corporate not to divulge share counts, as they feel it is immaterial to shareholders. I have a different opinion, in principle, but don't care as re:SGI, since the 4M share difference has little impact' IMO to the market activity.
The outstanding debt instruments were issued ~July '98, & balance payable is due towards the end of Sep '99. They were issued to existing LT shareholders. SGI feel thy are in prudent hands. They also receive a 1/4ly interest payment. Sounds like they are convertible at any time, but were issued for about $.40, so it's not likely they'll come to market.
Nancy mentioned that the stock has seen lots of dilution, as can be seen by the career high price of ~$250. This might explain the serious bearish behavior on the recent news.
She also pointed north of the border, Canada, as a reason for some of the volatility; different margin, shorting, trading restrictions, etc.
SGI continues to work OCET, and financing. The Illinois Power endorsement should help to crack the catch-22 of needing financing to buy the demo plant…and needing the demo plant to secure some financing. The goal is to secure $12M. They see (thankfully) the futility in additional equity placements at the current market price, and are leaning towards traditional bank financing.
Overall, a very calming discussion. Again, my thanks to Nancy. Despite the thin market in security, currently, it continues to be a good bet LT. My gut, contrarian feeling is to buy whatever I can get under .20…
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