To: blkjk7 (850 )
From: ocmayor Monday, Jan 11 1999 2:00AM ET
Reply # of 2355
Scoobey,
I am becoming a little concerned about the secondary offering at .35, Why now if stock is trading at .40? If anyone on the thread disagrees with the following please tell me your feelings and analysis? I am hoping Scoobey might know more.
My take now, The stock is selling at over .40 now, so obviously buying at .35 in the secondary offering is much more attractive than .40 (which does not even include the brokerage commision) this screws the market share holder. If secondary shares are available at .35, and the market price is .40, the secondary share offering is clearly diluting the market share price... and you would be silly to buy from the mm's when you can get stock from Econnect directly, minus commisions for cheaper. Plus with all of the buys at .35 the share price will not move, matter what the volume. If the insiders are so gung ho about seeing $2 or so in September, why the public offering at .35 ( this .35 seems shady). Another question how much money are they trying to make from the secondary offering, and what if they can't reach their goal?
Finaly, as one posted on the AOL board, does it "seem apparent that a buy out offer was made, and this stock offering is BETT's poison?
All considerd, Buying in the market at .40 is dumb, the company is admitting it is only worth .35!!!! So why would anyone pay more at this point, plus buying the secondary offer with the free trading option could easily allow one to hedge their risk 2 to 1 favoring short, I thought ehey were looking for long BETT holders....
This means, and correct me if I am wrong, (1)the market stock trading at .40 is only worth .35 (what the company is asking). (2)The sale of all these shares at .35 will dilute the share price. (3) If BETT is looking for long term investors, why give them the option of selling 2 shares for every 1 in May?
I don't mean to be a downer, I still will stick lomg here, but these are tough questions...
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