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To: Ron S who wrote (12060)11/16/1999 7:22:00 PM
From: Benny Baga  Read Replies (1) | Respond to of 20297
 
>>>Again, I think this convert is the wrong financing.

Ron, how would have you done it? Obviously they need the cash, with currently only enough to cover 6 weeks of Payroll, and hiring faster than ever before.

>>>At this rate, there wont be much institutional holding of the stock.

Gus won't be selling ;-)

>>>Lets just pray that Transpoint or Spectrum don't plan a further sabotage announcement to coincide with the next week's date when the converts go effective.

FWIW, Spectrum has been very quiet so I wouldn't be surprised to see something. On the other hand, there were some favorable comments by a First Union VP about CF's new pricing structure. What would it take to crack spectrum in half?

Benny(IMHO)



To: Ron S who wrote (12060)11/16/1999 7:23:00 PM
From: David H. Zimmer  Respond to of 20297
 
Ron, nice to see you posting. What I expect is that Transpoint and Spectrum are preparing their own IPOs. That should put the icing on the cake, i.e., common financing versus interest laden debentures.

Oh well, hope things work out for the shareholders. Looks like they got sold down the river again today.



To: Ron S who wrote (12060)11/16/1999 7:27:00 PM
From: Bruce Prescott  Read Replies (2) | Respond to of 20297
 
Ron,

I think we will know whether the convert is either right or wrong as a method of financing when we see how the money is used. If it is just for "general corporate purposes" it is worrisome. Looks like an unexpected revenue shortfall -- perhaps anticipated revenues from Wingspan are in jeopardy.

If it is for an acquisition, it may be that they needed to secure financing more quickly than expected.

Bruce



To: Ron S who wrote (12060)11/16/1999 8:56:00 PM
From: Bob Kim  Respond to of 20297
 
It would be nice to think that this would bring on new coverage and recommendation for the shares, but this almost never happens as a result of a convertible bond financing.

A fee is a fee. I'd bet that ML starts coverage. Besides, ML relies on the research coverage of the underlying equity to make convertibles recommendations. ML can't push the convertible as an equity alternative if the rating on the underlying equity isn't positive.


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