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Strategies & Market Trends : Shorting stocks: Broken stocks - Analysis

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To: Q. who wrote (1329)	7/1/1998 12:25:00 PM
From: drakes353	Read Replies (3) of 2506

John: Someone is posting on the Yahoo! PAMC board that the numbers will be out next week. Bunch of true believers over there. They all swear the stock is going to $40. They are getting a little lathered up and I suspect that readers of that board are the ones showing buying interest in the stock. Kind of a "buy it now or miss out on the big move" mentality. I used to see that a lot with Data Race (RACE). Whenever I've seen a company say the numbers will be out by X date and they aren't the news is worse than previous indications. We'll see if the pattern holds. Quick mention on SIRC. Recently popped up in an SEC Search. Hadn't done a discounted convert but were registering shares for some offshore outfit. Well, they filed an 8K yesterday. Did a convertible preferred deal where the convert holders can buy common at $3.33, with the stock around $6.50 that's a 40%+ discount. Not a huge deal (only $700,000) just another sign that this outfit might exist only for those close to the company and not the common shareholders. Oh, included in the deal were some in the money warrants for 27,000 shares struck at $4. FWIW, BINC did something similar around six months ago and the stock got knocked for a 30-40% loss. I put on a small SIRC short last week. drakes353

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