Ken,
Raining every day in Iowa so I have time to look at most stocks. RSTO spiked my interest. Looks to me like they are going to let those converted shares out in the next 60 days. Four million more shares are really going to depress the price. Looks like a real good short candidate. Already a third of the float is shorted according to Yahoo. I am amazed at the volume given the industry. 300K shares a day and a float around 3M? Thats very odd. This is from their just released 8K filing:
We entered into a Stock Purchase Agreement, dated as of May 17,
2001, with a number of accredited investors pursuant to which the investors paid
us an aggregate of approximately $24.5 million in consideration for 4,515,762
shares of our common stock at a price of $5.43 per share. The transaction was
priced at the closing market price for our common stock on May 16, 2001 and was
led by a group of institutional investors including funds managed by Capital
Research and Management Company and Fidelity Management and Research Company on
behalf of funds and accounts managed by it. Other institutional investors
included Baron Asset Management, Apex Capital, LLC and Buckingham RAF Partners,
LP. As part of this private placement transaction, we agreed to use our
reasonable best efforts to prepare and file with the Securities and Exchange
Commission, by June 1, 2001, a registration statement for the resale of the
common stock acquired by these investors pursuant to the Stock Purchase
Agreement. We also agreed to use our reasonable best efforts to cause the
registration statement to become effective within sixty (60) days after the
registration statement is filed with the SEC. Additionally, we agreed to keep
the registration statement effective until the sooner to occur of
Joe |
