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 389.79

-0.5%

12:43 PM EST

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To: drakes353 who wrote (29239)	7/27/1998 2:57:00 PM
From: Alan Edgett	Read Replies (1) of 33268

So, Drakes since you were right (again)..help me out a little so I can learn...if you don't mind. Fortunately, I don't have a position so this really is academic. Let's see if I get this right... These "new" investors will be guaranteed a conversion that will probably be the lowest closing during the previous 30 days or something, so they have guaranteed access to something like 5 million shares (assuming a price of conversion of .50) sometime in the future. Between now and then, they try to pump the price up as high as possible...say $2.50 or $3 using PR,etc. whereupon they short 5 million or enter into an agreement with an institutional short seller to provide their 5 million shares when asked for a fixed price now. The selling causes severe pressure on the stock, the PR stops and the price falls to the needed level for conversion. So far so good? So they have between now and when RACE runs out of cash in november to pull-off the conversion, and, assuming my prices, would make anywhere from $2-2.50 X 5 million shares less commissions? So, their "risk", effectively is zero for any price over $1 assuming an eventual cost basis of .50? And management...for lack of a better term...is betting that between now and November sales will materialize, since they've virtually assured their stock will be at .50 by then. Hmmmm...Nice work if you can get it. edge P.S. Hey Fred...guess what livarkis (sp?) just made $40,000 for "helping" with the financing deal...c'mon man, it's time to quit our day jobs!!!

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