Command Systems, Inc. (CMND) Message Board

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Technology Stocks : Command Systems, Inc. (CMND)

CMND 0.114

-12.4%

Dec 3 3:59 PM EST

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To: Jeffrey E. Klein who wrote (502)	5/3/1998 11:58:00 PM
From: rainwater	Read Replies (1) of 1956

Jeff CMND CHOSE 0.04 $/sh instead of 0.06 or even 0.09? Why would Caputo and Co take the preferred dividends from Income instead of cash from IPO sale (as they stated they would in their prospectus and you accurately pointed out)? I know time will clear all the mist away about the why etc... but bear with me here.... the underwriters didn't like it!! and obviously this move caught them off balance too. Caputo does not mind the paper loss he faces himself. CMND stated in the CC they will use stock options to compensate/retain key employees. if the price were to inflate faster than growth possibly would that hinder the options plans or raise the cost to CMND? if they came in with 0.09 that would raise the price... and raise expectations looking forward. Put pressure on them when they were planning to transition to another business model. and they preferred to take the hit upfront. seem to me like Caputo and Co weren't NAIVE in their decision. They deliberately chose a lower stock price scenario. WHY?

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