BJ's Restaurants Inc. Message Board

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Non-Tech : BJ's Restaurants Inc.

BJRI 34.95

+0.7%

Nov 7 9:30 AM EST

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To: Wowzer who wrote (397)	3/22/1999 9:45:00 AM
From: Lhn5	Read Replies (1) of 865

Rory it certainly makes sense to me that it is difficult and akward for a broker or brokerage to recommend the stock to clients when they have to explain the possible dilution from the warrants. If for example the stock began to run up with 10 million warrants outstanding and the warrants went into the money, all kinds of volatile scenarios could take place--by those holding shares but not warrants, there could be massive short selling to try to avoid the stock staying in the money to avoid the dilution. If they stayed in the money, the PE ratio and all other numbers would change drastically overnight and would stay that way for quite a while until the new funds could be put to work in many new locations or with an aquisition. If the warrants go away, perhaps CHGO could sell some new shares with a modest amount of dilution, say a million or two shares via a brokerage that would then supply analyst coverage of the stock. I am just making this up as I go along. Time will tell. I look forward to hearing soon about aquisitions and other expansion plans that are newly availbe as mentioned in the release.

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