Data Race (NASDAQ: RACE) NEWS! 2 voice/data/fax: ONE LINE! Message Board

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Technology Stocks : Data Race (NASDAQ: RACE) NEWS! 2 voice/data/fax: ONE LINE!

RACE 330.28

-1.8%

3:59 PM EST

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To: Marshall who wrote (27754)	2/7/1998 12:43:00 AM
From: drakes353	Read Replies (1) of 33268

Hey Marshall: Guess I wasn't so out of line expecting some kind of press about the layoffs. Still no comments about the size of the charge. It's gotta be in the several hundred thousand dollar range. A friend commented that this inital 100 shares may have something to do with the privates creating a "holding company", something perhaps Drakes can comment on. As far as I can tell the converts are already held by offshore holding companies so I'm not quite sure what your friend is talking about. I'm not so sure they can begin regular conversion until the first 22 days after approval of the documents has past As soon as the 424b was filed (couple of weeks ago) the conversions could begin. The 22 day thing is the "lookback" for calculating the conversion price. It's calculated by averaging the three lowest closing bid prices over the 22 trading days prior to conversion whenever that yields a price lower than the original fixed conversion price (what was that anyway? something like $6.43, I think.) and remember - they will likely keep any conversions to amounts which would represent under 5% of the total shares at any one time due to the rules that 5%/better beneficial shareholders must follow. Yeah, but having a couple of them convert say 4.9% positions around the same time sure isn't going to help things any. Keep in mind though that this isn't a discounted deal (at the moment). If anything conversions will snuff out any rallies since the convert holders will short or do outright sales into any strength. I don't expect them to cause much downside damage unless the discount kicks in. Also - isn't the conversion price refigured on each event of conversion? The conversion price will change based on the lowest three closing bids over the prior 22 trading days. So for up to 22 trading days at a time it can remain the same as long as the three lowest closing bids have not changed. I'm curious about the size of the charge related to the firings since RACE's cash position is so precarious at the moment. Probably a good time to get a handle on how quickly RACE might get knocked down to the SmallCap list if they fall out of compliance with the continued listing requirements. drakes353

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