Institutions own 36.8% of CONV or 3,539,045 shares compared with the 9,600,000 shares trading as of 9/30/99. This doesn't include Goldman Sachs's 3,099,127 shares. Fund owners include Nevis Capital Management (1,021,900), Axe-Houghton Associates (904,045), Fidelity Management & Research (751,300), RS Investment Management (235,000), Nicholas-Applegate Capital Management (158,400), Strong Capital Management (a50,000), Oppenheimer Funds (116,700), RS Growth Group Funds (110,000) and King Investment Advisors (91,700). That's strong institutional backing. As the story becomes better known, I envision these firms adding to their position and new institutions taking positions.
Remember that Goldman Sachs and Cisco hold warrants to purchase CONV at $15.00 per share. They have a vested interest in seeing this company grow. Priced at 1.1X FY2000 estimated revenues, this company is a tremendous value compared to ALGX, EXDS, RTHM and others. 4Q99 revenues should be $55 million vs. 4Q98 revenues of $27 million -- an increase of more than 100% and strong sequential quarterly growth of 31%. |
