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Technology Stocks : NHC COMMUNICATIONS (TSE:NHC) acquiring THE FIBER COMPANY

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To: DaveAu who wrote (763)7/29/2001 12:07:09 PM
From: Lalit Jain  Read Replies (1) of 856
 
Bluejay,

Very well put. I never for once thought that you were bashing NHC. Even if you were, you have every right to do so. Every one should have the right to voice their opinion.

I agree with you that a one time placement would have been better. However, the deal that NHC just announced can work well for both parties.

1. NHC draws only when they need $$
2. NHC avoids a liquidity crisis whereby shorts sellers would have a field day.
3. If NHC can sign up some contracts soon, then NHC gets a better value for it's shares, and will issue fewer share for the $18m or so.
4. This agreement in advance avoids scrambling at the last moment for financing.
5. A deal like this means that THERE ARE investors that are willing to buy into a technology that poised for future growth.

If NHC can sign up some contracts soon, then the market will drive NHC up regardless of the deal with Roseworth.

Regards,
Lalit Jain
spot4rent.com
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