Simula (SMU) Message Board

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Non-Tech : Simula (SMU)

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To: Noblesse Oblige who wrote (813)	12/10/1997 8:42:00 PM
From: wally	Read Replies (2) of 1671

Simula acts like death! In 98 had we no profits and no new ITS orders. Also we have 25% more float. The year started with about 5-6 mil shares floating. Over 1.5 mil were added. 700,000 plus from the 10% converts, 200,000 plus from insider selling, and over 500,000 plus being shorted from 8% convert holders. Now we are paying the price. Today we had more stock that needed to be shorted and no buyers. In fact we have not had any real buying in months. I am starting to think that SMU should trade at 15-20 times next years estimates. If the stock was undervalued at this price we should see insider buying. We will see if any buyers exist under 15 very soon. The last time SMU got an ITS order the stock went up for 2 days and 2 weeks later it was back down(March 96). An ITS oder will be used as a chance to sell stock by the frustrated holders and/or the company. I figure that in 6-9 months SMU will once again need capital, and selling more stock will be the continued choice. In Dec of 96 the stock was around this price and again in Dec of 95. Why should Dec of 98 look any better. If the stock was undervalued the company wouldn't keep selling and someone would be buying. Welcome to the roach motel! Have a good evening!

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