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Microcap & Penny Stocks : JTS- "A Nordic Drive in Every PC and laptop"
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To: Ben Antanaitis who wrote (1375)9/26/1997 11:50:00 AM
From: X Monger   of 1985
 
Ben,

I like most JTS shareholders have grown a little bit tired of the management f*ck ups over the past 2 years. I think for the first time in a while Mitchell & Co. made the right move.

1. One look at the most recent balance sheet (Aug 3) and you knew that JTS had to come up with some additional financing real soon:

Cash and Cash Equiv $5.2 mil
Working Capital Deficit ($66) mil

2. As opposed to the Series B/C ($40 mil) convertible financing deals of the past, this Series D is made on more favorable terms. The conversion price is a FIXED at $0.83 NOT at a discount with a guarantee of additional shares to insure preferred holders against possible losses while hosing the common s/h.

3. Yes, it is still dilutive (add 25+ mil more shares to o/s) and that sucks but I'd rather see dilution rather that chapter 11. As long as this company keeps afloat long enough for the 3" design to take off we all have a chance to see some reward for all this risk we've undertaken.

4. Finally, and most importantly, management has put their money where their mouth is and put up an additional $5 mil stake in the company and convinced an institutional investor to fork over $20 mil. With a negative book value, preferred, common, and even bondholders won't see a cent if JTS ever filed for chapt 11. As such, it's a little reassuring at this point to see someone other than us little individual investors have faith in this company.

Xmonger
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