Fred,
I have to call foul on your examples. Only one of them, so far, has come back from sub $.05. That one is still @ 3/16. All of the rest never got this low which is exactly my point.
Suzanne,
Per the 10Q, as of a week ago, the convertibles had traded $1.7MM worth for 33.9MM shares which added up to 5 cents per share. Since the conversion factor is @ 70% for the remaining $1.151MM, I see the ability to convert to an additional 32.88MM shares. These are substantial hits for a company with the following problem in their 10Q:
. Limited Working Capital; Financial Instability
As of June 30, 1999, the Company had a negative stockholder's equity of
$2,743,387, an accumulated deficit of $36,484,100, and a working capital deficit
of $3,394,700. The Company has frequently failed to make timely payments to its
trade and other creditors. At June 30, 1999, the Company had more than $600,000
in past due trade accounts payable, which has affected the Company's ability to
purchase necessary goods and services in a timely manner. The Company is also
delinquent in its payments of federal payroll tax liability, totaling $498,000
at June 30, 1999 (down to $433,000 at August 12, 1999). The Internal Revenue
Service has filed a lien on the Company's assets for a total of $262,000 for the
fourth quarter 1998 liability.
You won't have to worry about me hangin' around here.
C-YA!
BT |
