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Microcap & Penny Stocks : JTS- "A Nordic Drive in Every PC and laptop"
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To: tbevan who wrote (936)6/25/1997 5:26:00 PM
From: David Krafcsik   of 1985
 
Well, the way I read it was that 29.3 million shares were being offered by someone, and that the other 26 million shares were due to a conversion that may happen from the series B and C preferred stocks. This sounds better in some ways, but the additional stock will cause dilution (though a little dilution at this point is nothing compared to the price slide we've been seeing...)

I thought the share price drop was mainly due to the new estimate by Montgomery that they would have a net loss for the year, but this dilution and other info has to be contributing also. This price slide is kinda getting insane..... I was waiting for a clear bottom in order to buy more, but I'm starting to wonder if I want more JTS at any price.

The part that definitely has me worried is the wording on the conversion of the series B and C preferred stocks. It implies 26 million shares but that it depends on the stock price. Something tells me if the stock price is cheaper (than the ~ $1.25 price assumed) That the dilution is much worse. At these prices it would seem that it would be a 52 million share dilution. I wonder if the the holders of the series B and C stock could be helping to move the stock price down in order to ensure that they can convert at a lower price. They could dump 5 million shares to drive the price down and get an additional 26 million shares when they convert. Is this a possible scenario?
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