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Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?

To: fishweed who wrote (18595)	1/13/2000 12:24:00 PM
From: Rande Is	Respond to of 57584

Yes, Fishweed. The advantages of the offering warrants, options, units, etc. are significant. Earlier in the year, we would find a promising stock and start accumulating it. . .only to get news 6 weeks later that the company cut a deal with an offshore investment firm, where they issued convertible debentures. . . which incents the holders to short the company for maximum conversion. Some companies simply pile up debt by going to the bank. LPTHA has chosen to go to their shareholders for financial assistance. If I had my choice of building one of these three into a stock, I would always choose warrants and options over any sort of offshore deal. . . which nearly always involves convertible debentures. Yes, it can get confusing to sort out the warrants. . . and calculate in the options. . . but this is far better than trying to calculate the effects of an offshore firm . . as they use millions to short sell. . .before conversion, then when the stock rebounds, they start selling into the buying. . . . This is what hurt BDE so badly last year. All was fine until they sold out. Who wanted to hang around for conversion and dilution? Another thing is that LPTHA's financial backing structure is public and itemized carefully in their SEC filings. So keep that in mind, when you are sorting through all that alphabet soup. Rande Is