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Technology Stocks : E Loan Inc -EELN
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To: lee west who wrote (797)4/25/2000 10:39:00 PM
From: Sr K  Read Replies (1) of 817
 
I consider it junk news and a selling opportunity - if I had the stock. No details of the first announcement for $40 m (10+10+10+5+5) were given about rate and shares. Based on the 2nd release for the 13.1 warrants with 6.5 m at 3.75 they possibly issued 13.33 m shares at $3. That looks like 38% total dilution me. And what does it buy them? I still think their business plan doesn't make sense and they'll just stick around awhile longer. Note that BofA didn't come back for more. This is a low cost of entry business IMO and there's no room for a middleman margin in a business that can deal direct. The concept of having 80 offerors bid sounds good, but it leads to lower margins for the lenders, and then they have to eliminate cost to play that game. EELN is a good short on this bounce to 3 x what the new insiders just paid.

It reminds me of Softbank paying $16 prior to the IPO, and AOL and MOT (and who's the 3rd) buying Palm at the time of that IPO. Paying 3 x is asking for your money to be taken.
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