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Technology Stocks : Ciprico

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To: Joan Osland Graffius who wrote (6)5/19/1996 10:15:00 PM
From: olduser   of 20
 
Joan,

If you speak with the majority shareholder, find out what they think about the new offering.

1. They could be very upset with management given that they will be diluted. Management might be scared given that the only way this investor could get out would be for them to sell they company to another party due to the limited float in the stock.

2. The large shareholder could instead be encouraging the offering as it gives the large holder an exit strategy without selling the company outright. This has negative implications because why would this large shareholder want to get out. He has been with them very long and made a great profit.

Either way, the offering and its size does not smell right to me.

I like the company, but I am warry of the signal the offering is giving me.

Cindy.
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