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Technology Stocks : CIRC -- Ignore unavailable to you. Want to Upgrade?

To: Vegas who wrote (229)	11/19/1999 12:46:00 PM
From: RADAR )))	Read Replies (3) \| Respond to of 300

WASHINGTON (Dow Jones)--Snyder Communications Inc.'s (SNC, news, msgs) Internet business division doesn't have sufficient cash on hand to fund its operations through the end of 1999, according to a recent quarterly report filed with the Securities and Exchange Commission. Snyder, of Bethesda, Md., said in the report filed on Monday that Circle.com (CIRC, news, msgs) will require additional cash to fund its growth and operating losses over the next year and beyond. The Internet business will need to obtain additional funding from Snyder, borrow money from a third party, or Snyder Communications may need to issue more shares of Circle.com stock. (On Oct. 25, Snyder Communications issued stock tracking the performance of Circle.com.) However, if Snyder Communications issues additional shares of Circle.com stock, then there could be a dilution of the interests of existing Circle.com stockholders. Further cash provided to Circle.com by Snyder Communications will be considered an interest-bearing loan from Snyder or a capital contribution resulting in an adjustment in Snyder's retained interest in Circle.com. If Snyder must borrow cash to fund Circle.com it would result in an allocation of Snyder's debt and interest expense to Circle.com. Circle.com relies solely on Snyder Communications for operating cash. Snyder said that in August it entered into a $195 million revolving credit facility. The company intends to use the four-year unsecured credit facility for acquisitions and general corporate purposes as well as the repurchase of up to $250 million of Snyder Communications' common stock. The new credit facility bears interest based on the London Interbank Offered Rate, the lending bank's base rate of interest or the federal funds rate. On Sept. 30, there was $145 million in outstanding borrowings under the facility at a weighted average interest rate of 6.7%. Snyder Communications provides integrated marketing communications and interactive services through several of its units. -Carrie DeLeon; Dow Jones Newswires/Federal Filings Business News; 202-628-7663 Quote for referenced ticker symbols: CIRC, SNC © 1999 Dow Jones & Company, Inc. All Rights Reserved.

To: Vegas who wrote (229)	11/19/1999 12:50:00 PM
From: RADAR )))	Respond to of 300

Vegas: I was in PDYN when it dropped from 53 to 25 because of a secondary offering of 6 1/2 million shares issued. The secondary came out at 31 per share, close to the original price of the initial offer, but the investors abandoned in droves. Now, months later, the price of the stock is still trades between 25 and 36 and can be purchased today for 31 and change. I'll wait to reposition until the price has stabilized after the company announces their plans. This increases the downside risk further than I desire. RADAR RADAR