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Technology Stocks : BORL: Time to BUY!

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To: i-node who wrote (7462)11/18/1997 10:34:00 AM
From: Jack Gibson  Read Replies (2) of 10836
 
David: I am not questioning the wisdom of the acquisition, only
the time that it will take for it to show an addition to earnings.
The stock doesn't worry me. The Jan and April options do. Is
there sufficient time? I believe that BORL has about 36 million
shares outstanding. Issueing 12.5 million more is a 33% dilution.
That will knock hell out of the present stock price. It weill take some
time....maybe many months to recover. After all VSGN lost a good
deal of money ....some 20 million (12.5 million of that was due to
acquiring some technology) on revenues of 17 million. True they had
6 million in revenues in the preceeding year, but again, how long
will it take for Yocam to merge the two companies, how much of a charge will he take, and how long to get VSGN profitable?
Thanks,
Jack Gibson
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