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Pastimes : Georgia Bard's Corner -- Ignore unavailable to you. Want to Upgrade?

To: Due Diligence who wrote (6324)	6/15/1999 8:56:00 AM
From: Ga Bard	Respond to of 9440

Yeah I always find some posters extremely amusing. I was not here but I read the release at 3:45 when I checked my database and maybe you got a good one but I read the release and was not impressed. In the Patel transaction, Dr. Patel purchased shares of a newly authorized series of preferred stock for $5 million. The shares provide Dr. Patel with 55% of WellCare's voting power. The preferred stock is subject to mandatory conversion into common stock upon the amendment to WellCare's certificate of incorporation to increase the number of authorized shares of common stock from 20 million to 75 million. The shares will be convertible into 55% of the then outstanding common stock (after giving effect to such conversion) and will be subject to anti-dilution rights under which Dr. Patel will generally preserve his 55% interest in WellCare until there are 75 million shares of common stock issued and outstanding. Now maybe it is a good deal, I dunno, but I can see where some MMS are going to make a ton when that stock starts hitting the float. That whole release is about dilution on an unbelieveable scale. but it appears to have a small float and if you got in .53 when the news came out you got a bit of a gain. Of course Patel is taking it over so maybe there is more than the dilution in the release. GO FOR IT! :-) GB