Roger's 1998 Short Picks Message Board

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Strategies & Market Trends : Roger's 1998 Short Picks

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To: BDR who wrote (18282)	7/10/1999 10:39:00 PM
From: Druss	Read Replies (1) of 18691

Dale--I am not a financial wizard or trained in the field. However, I remember in my young years reading of the collapse of the Penn Central Railroad and an analyst speaking in retrospect saying "A housewife with the simple experience of being in charge of her family finances could have done a far better job." They were paying a dividend while incurring massive losses, literally borrowing to do so. I have kept that in mind when looking over a companies finances. Sometimes you don't need sophisticated skills to see how things are. I think you have the core of it. They are losing money, not making enough to cover that problem in the near future certainly and will need money again. As far as the holders of the debenture having enough leverage to drop the share value, I think they can do some damage. They can, and likely will, time their conversion to do maximum damage. I don't know if they will have enough leverage to shatter the share price, I don't have enough experience in these things and I don't know how skilled they are. The company did not go to this type of financing because they preferred it to getting a prime rate loan from a bank. All the Best Druss

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