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Technology Stocks : Softbank Group Corp

SFTBY 12.90

-3.0%

Feb 5 3:59 PM EST

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To: Edwin S. Fujinaka who wrote (4167)	3/1/2000 2:35:00 AM
From: Seeker of Truth	Read Replies (1) of 6021

Thanks Edwin, for posting the Business Week article. I'd like to comment on the price drop of 9984. I think a company with such an enormous growth rate of the number of subsidiary companies can't depend forever on borrowed money. There has to be some expansion of equity, typically via a convertible bond. So either the fact of a forthcoming such issue is known or else it is surmised. In any case, issuing more shares almost always lowers the price of such a company at least temporarily. The actual financing puts the company in a financially stronger position which in due course, not long, is recognized by the market place. I'm not urging everybody to keep their stock; our board is not a cheerleading squad. I'm saying that even with the 21% drop from the intraday high of 194,000, the stock is still high in price compared to the book value so a small increase of the shares outstanding can produce a large increase of the underlying equity. Therefore such financing is a good thing. I'd like to see it happen, the sooner the better. On to 780 profitable subsidiaries in 2005!

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