MEMC INT'L. (WFR -NYSE) The Sleeping Giant? Message Board

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Technology Stocks : MEMC INT'L. (WFR -NYSE) The Sleeping Giant?

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To: Andrew Vance who wrote (4210)	2/17/1999 1:19:00 AM
From: Dennis J.	Read Replies (1) of 4697

Andrew. Re your post on WFR WFR broke gave a double bottom (DB) p&f sell signal, and also broke a spread DB at 8, then gapped down and touched 7 today. Is this break perhaps related to ongoing financing? Last Nov, WFR was seeking to raise about $200 MM via two proposed financings. In Dec WFR filed a Sec. Form S-3A registration for a rights offering at $9.25. This break is suggestive of a private placement now taking place in the range of $6-7. Could this be a possibility? If so, equity is being diluted by raising money at lower stock prices. Such a deal further suggests that a debt financing cannot be made. The private could also be for preferred equity, which equals soft-debt. Such debt gets preferrential treatment to common shares. I know nothing about what WFR is trying to do, or their financial staying-power until they again become cash breakeven. But, perhaps you should do some checking, before loading up down in the $7-8 range. This selling suggests sombody knows something that we aren't privvy to. Seems like we should be concerned. I will be happy to discuss this further, online or by phone, if I can be of any help. Dennis

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