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Microcap & Penny Stocks : JTS- "A Nordic Drive in Every PC and laptop"

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To: Patricia Zatarain who wrote (1021)7/7/1997 10:28:00 PM
From: van wang   of 1985
 
JTS bonds behave like stocks because of the financial state...but read the balance sheet carefully and you will see that bonds do not have senior claim to assets (remember the accounts payables and revolver bank--silicon valley bank i think)...plus JTS has given 3 in licensing rights to WDC (and COMPAQ should JTS go under)

if JTS files chapter 11, we are all in the same boat...however, since they are in weak financial state...JTS's incentive should be to gamble on the riskiest highest return projects...leaning hard on the bond holders since equity (and mgmt) holders have residual rights

so that is qualitatively why bonds yield nicely...no free lunch!
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