AR,
Whether or not you vote your proxies for or against the preferred stock, it will pass; just too many company controlled shares for the plan. These Convertible Preferred shares will serve to depress the common share price as the conversion prices are reached. However, the company had no choice as they needed to convert their short credit line to long term debt, which this plan will do. In the long run this will lower the interest rates charge for the debt which should improve their profits.
As to the technical analysis for LCAV, on my last post #544 (9/22/98), I reported a short term buy condition which should have moved the price upwards to $2.00, however this did not happen. Very often we can learn much about the future price performance of a stock by what it doesn't do. In other words, regardless of the positive indication of the money flow indicators, the short term positive trend was aborted by on balance selling. This action is quite common in bear trending markets where investor sentiment is negative. So for the present avoid adding to positions in this issue until we see evidence of a confirmed positive trend.
Harry |
