Anthony @ Equity Investigations, Dear Anthony, Message Board

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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony,

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To: rogermci® who wrote (339)	12/7/1998 9:37:00 PM
From: RockyBalboa	of 122087

Do you have an actual share count on NAVR. Back in June they did a convertible issue w. as far I remember. That bunch was sold into the 2nd run-up to 9 back in Summer. Here it is...enjoy reading. fnews.yahoo.com "Some companies Navarre learn. In May, the company was running low on funds so it issued a $20 million private placement. The fact that it was dilutive would be an understatement. The deal consisted of 7.6 million shares issued at $2 5/8 and 7.6 million warrants exercisable at $3 1/2. The offering might have seemed fathomable earlier in the year when the stock was trading barely above two bucks a share. However, since the shares had hit $12 3/4 the month before, Navarre's timing couldn't have been worse. The logical solution, which was to produce working capital by spinning off the pure Internet glitz of NetRadio, did not occur to the company until late July. Too little, too late. By then the damage was done and the dilution had flooded the stock. ... With the offering shares having appreciated many times over, it was clear that the selling would kill off any rally. The placement shares and warrants represented twice as many as all of the shares outstanding at the time. Any fundamental improvements -- and there would be plenty for Navarre -- would be greeted like a salmon trying to swim upstream as the deluge rained down. " Earnings don't matter, revenues don't matter ... share count doesn't matter. C.

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