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Technology Stocks : JMAR Technologies(JMAR)

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To: Candle stick who wrote (9672)9/19/2007 1:24:22 PM
From: X-Ray Man   of 9695
 
As recent price drop reflects, this Laurus funding looks like them taking effective ownership of the company. The financing is more than double market cap, and the warrants amount to even greater share. Plus Laurus has royalty rights on part of the revenue stream. One thing this does is prevent someone else from taking over the company based on market value, but that also means that investor's are not likely to yield any windfall on a takeover. Hence, I can see no reason why Laurus would not just take the entire enterprise private. Why isn't this just dead money, then, I wonder? Well, the only way to get ROI now is if one of the products takes off. The good news is that we are back in effectively a venture capital mode, where the market really doesn't matter. Hence, buying in very cheap allows anyone to play as a minor partner in this new venture phase of the company. At least, that is my take on it, but it really needs the expertise of a financial analyst and accountant to really understand the current situation.
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