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Technology Stocks : CSGI ...READY FOR TAKE-OFF!
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To: feltburner who wrote (1683)12/23/1997 10:40:00 PM
From: angel  Read Replies (2) of 3391
 
I have found more things in the SEC filings that are very strange.

ACCUMULATED DEFICIT; NET LOSSES. The Company has not been profitable and had accumulated losses at August 31, 1997 of approximately $19.6 million.

IMMEDIATE AND SUBSTANTIAL DILUTION. Investors purchasing shares from the selling stockholders in this offering will incur immediate and substantial dilution of $6.38 (95%) per share between the adjusted net tangible book value per share after this offering, $.37, and the estimated public offering price of $6.75 (the closing price of the Common Stock on November 13, 1997, as quoted on the OTC Bulletin Board. The holders of the convertible notes acquiring shares from the Company upon conversion of the such notes will incur immediate and substantial dilution of $4.36 (92%) per share between the adjusted net tangible book value per share after this offering, $.37, and the assumed conversion price of $4.73 (70% of $6.75, the closing price of the Common Stock on November 13, 1997, as quoted on the OTC Bulletin Board).

You said that people dont really read disclaimers from small companies. Is this information above more lawyer talk or is it meaningful? It look very meaningful to me. To use Tech's line LETS DO THE MATH. If the LSI contract is 3 mil lines and they get .33 per line then that is 1 mill dollars. They would need 19.6 of these size contracts just to break even!!! At the rate of one contract a year, they would be break even by about 2017!!! And on top of this now there is a NASD investigation??? How can insiders even think of selling their shares??? If any of them file 144s then this stock will be under a dollar that day and that does not require any math.
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