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Technology Stocks : Turbodyne Technologies Inc. (TRBDF)

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To: Mike C2 who wrote (1715)9/2/1998 5:21:00 PM
From: Katherine Derbyshire  Read Replies (2) of 3458
 
>>> Here is my
opinion: Development stage companies often do not have the access to capital
markets that more established companies have. Higher risk startups capital access is
often via Reg S or Reg D offerings or other convertible debentures that offer
conversion discounts to the holders, dilution to shareholders, and opportunities for
shorting. 1Q98 saw the booking of 5 million shares of stock that afforded the
company 9.6 million dollars in late 97 to complete EPA approval, move mfg. capacity,
and sow the ground for future orders via in vivo trials around the world. <<

All of these things are true. But KLA-Tencor (KLAC), the third-largest semiconductor equipment company in the world, only has twice as many shares outstanding as TRBD.

Looks like some pretty significant dilution to me.

Katherine
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