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Strategies & Market Trends : Floorless Preferred Stock/Debenture -- Ignore unavailable to you. Want to Upgrade?

To: David Sirk who wrote (619)	7/10/1999 2:59:00 PM
From: Mama Bear	Respond to of 1438

If you would post the language of the restriction it would be helpful. There is often significant 'weasel wording' that ends up allowing the short selling in spite of such a restriction. Barb

To: David Sirk who wrote (619)	7/10/1999 4:07:00 PM
From: Zeev Hed	Read Replies (1) \| Respond to of 1438

David, David, my dear friend, beware from falling in love with a stock because in time, "there ain't no furry like that of a scorned lover". Let me try once more to explain to you why CLVE has become an extremely dangerous situation for long term investors. 1. They have signed a floorless debenture (and you indicate that the "smart security lawyer" did not read yet the 80 pages to be sent over from GEM, a big big red warning signal, those 80 pages written by GEM must have hidden within them not one, but 15 time bombs and mines) 2. The business plan they are executing is faulty and fraud with disaster. I already stated quite clearly that they are paying for $3 million or more of accounts receivable, any person that has run a business (and I have run a Medical Instrumentation business) will tell you that when monthly sales are $200 K and receivable are more than 90 days (like $600 K), there are only two possibilities, a) the majority of the receivable are not collectible, or b) the business has fallen from a precipice to a minuscule rate of its prior sales rate. Whichever it is, it is a bad acquisition. 3. That acquisition will eat money like there is no tomorrow, I suggested you check the leading mobile imaging company and check profitability and working capital requirements, have you? Let me tell you that for this type of business to be profitable, it needs a critical mass and a lot of cash which CLVE does not have. 4. This management does not know what they want CLVE to be, they have acquired I-net properties in Canada which supposedly will be "great" (aren't they all), and now they already diversifies into the mobile medical imaging business, and who is doing that? A securities lawyer that probably does not understand either of these two completely diverse businesses. We have an old maxim in business, "if you do not know where you are going, you'll never get there". This company suffers from not knowing where they are going, from defocusing of efforts and spreading unavailable cash resources too thin. Conclusion, not only they have toxic financing, they will need much more and the company is in trouble because it is badly managed. Now, this is a responsible analysis. For you to be responsible would be to take each of these points and give is a responsible rationale why these are not major warning signals. Like me, you do not know the details of the floorless, but you feel I am irresponsible for sounding the warning clarion. I believe that you are the one which is irresponsible by promoting a company without knowing the details of their financial condition. You call the company and they tell you everything is dandy, we are going to have a bunch of PR (and sucker in a bunch of innocent bystanders). I base my responsible clarion call on hundreds of case histories where that type of financing was a death sentence to the financial well being of the investors, and many cases resulted in CH 11. What do you base your bullish scenario on? Few upcoming hyping PR's and news releases, a new "great" PR company? When was the last time that news releases and active PR brought shekels to the bottom line. Wake up my friend, those people are using you. Zeev