I agree that the figures near the end are closer to reality, but that was $20mm for AXC and $40mm for TVoW. The share of TVoW held by AXC would certainly be worth something. They could be borrowed against, for example.
The $20mm for AXC would replace the $10mm they will have given to TVoW, and would provide enough cash to operate for awhile, though not for more than 6 months to a year with all that they have going on. But don't forget that there has been a reduction in the cash burn rate since, with the stock above $4, many more of the preferred have no doubt converted and cashed out, with the effect of raising the book value and decreasing the cash outlay for preferred dividends. Still it certainly is true that they would have to register additional shares and sell more shares at a later date, just as CMGI continues to sell shares of LCOS periodically.
As for CPQ, interestingly at this moment the Nasdaq is up on Globex futures despite the resignation. Thus the market may yawn. Too bad I'm not short CPQ any more, though. <G>
And I want to give you credit for arguing the other side well. It will make for an interesting debate for all the lurkers to read, and will help them to understand the issues involved, and that $1 billion isn't going to appear in the AXC bank account overnight. I appreciate your taking the time to argue the other side.
Carl |
