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Microcap & Penny Stocks : Pacific Diagnostic Technologies (PDTK)
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To: baystock who wrote (44)1/11/1997 8:42:00 AM
From: chick in NC   of 262
 
Ram (and everyone else):

A little info I've gleaned that I haven't seen posted -- it reaffirms my belief that this is a good company snagged by some bad numbers that still has potential:

The company does indeed have about 6 million shares outstanding, which is more than any of us thought. However, they also had a conversion of notes come due at the end of the year, which could have diluted the standing by another 8 million. Rather than do that (which would have swamped us all for all time) they elected to tie the conversion into a secondary offering to pick up the funds needed to purchase the Biotrack system. All of this is supposed to take place in the first two months of 1997.

If the offering is fully subscribed:
1. PTDK picks up the Biotrack and its European marketing network and its current $1 million in profits yearly.

2. A major dilution will be forestalled.

3. The company picks up an additional $500,000 for operating capital. It also has the funding to move to NASDAQ small cap.

4. I finally make some money off this company.

Warrants are to be excercised at .65 by December. If all goes well, that should give those with the warrants reason to smile by Christmas -- and the rest of us some happy days well before then.

As to why it got slammed the last couple of months: my bet is that folks who know the timetable for all of this saw an opportunity to make a lot of money on shorting, then pick up shares cheap before things moved back up. Here's an easy test to see if that's right. Watch the accumulation over the next two weeks. If its a slow positive accumulation, followed in February by the successful subscription of the secondary offering, then that's what happened.

Of course, if the secondary offering fails, then we're all SOL.

That's the view from down here.

Chick in NC
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