AND - Andrea Electronics
The June 10, 1998 private placement convertible is now exercisable below the floor. 2.1 Million new shares.
sec.gov
The annual meeting is 11/13. Voting on 1; Increase authorized shares of common stock to 25,000,000 from 15,000,000, 2. Authorize 5,000,000 shares of preferred stock (No plans for issue…now!) 3. Authorize 1998 stock option plan(2 million shares to insiders, mostly Andreas)
I know people have various opinions of JJ Cramer. I would never trade on his articles, but I think he knows stocks and the industry. From a recent article on thestreet.com:
archive.thestreet.com
10/5/98 1:52 PM ET
“Holy cow, this 30-year bond trades like a small-cap with a sqeeze. It trades like one of those $&^&^# stocks like Andrea Electronics (AND:AMEX) or Entremed (ENMD:Nasdaq) or ZZZZZ Best before the big breakup. It has had a gigantic move in the time that I wrote this missive.”
The recent news about Intel and AND is interesting but I don't see any concrete revenue potential based upon this release. I also don't think Intel would put ANY code in their chips that they don't own outright. Buyout? I don't think so.
Speculation/Thoughts…A big name PR release right before the annual meeting. AND has had some interesting PR in the past. Dilution and more to be voted upon 11/13. Frank Andrea retires, but still in the new 1998 stock option plan.
That said I opened a very small short position today on the second run-up to 14 land. Horrible market to open a new/short again in, but I had to! There is no reason why the convertible holder's have/will not convert. The conversion price is below the floor (~19% more shares in the market, with a basis of 4.65!)
I think something stinks.
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