INPR - Inprise to Borland (BORL) Message Board

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Technology Stocks : INPR - Inprise to Borland (BORL)

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To: George Lazar who wrote (2551)	4/4/1999 4:36:00 PM
From: Kashish King	Read Replies (1) of 5102

So, they have a choice: immediately jeopardize everybody's job by buying the convertibles and leaving the company with virtually no operating cash or simply allow the conversions to take place thus saving their jobs temporarily and shafting shareholders. The issuance of shares isn't really linear, it's recursive due to the built-in reinforcement: the dilution drives the price down triggering more dilution. It's a high-gain dilution amplifier with a destructive feedback loop. It's thermal run-away that can only be quenched with a bucket of operating cash to the tune of $47,000,000 in cold, hard cash. The rhetorical question was asked: would they rather have 1 share or N shares given equal value? As if clearly they would rather have a single share. Not so fast!. If they're short the stock, you can bet your bottom dollar, if you haven't already, they would love to see more shares thus more dilution thus greater gains on their short position. Even without a short position, why should they care whether they have one share or N shares? I must add the obligatory: What am I missing?

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