Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Mr. Pink's Picks: selected event-driven value investments -- Ignore unavailable to you. Want to Upgrade?

To: Druss who wrote (12761)	2/10/2000 2:25:00 AM
From: R.E.B.	Read Replies (1) \| Respond to of 18998

Druss you are wise indeed, I have never questioned Mr. Pink's honesty.... I think he's as honest as Abe! I don't always buy when Pink says to buy and I don't always short when Pink says to short... I take the suggestion and do a little homework (unlike some folks here). Every suggestion has to pass the smell test.... speaking of smell, I hate to revisit HDTV, but let me tell you more of my concerns here: Argyle Captial Management Corporation is a Delaware corporation run by a Mr. Robert "O" (no need to use the whole name). Mr. O is the pres. of Argyle and a director of HDTV. HDTV borrowed $1,188,000 from Argyle. The interest payable on the note(s) is(are) convertible into HDTV shares at the price of 50 cents per share. Also the note(s) is(are) convertible at any time into 2,376,000 HDTV shares and may be sold at the sole descretion of Mr. O. If the notes were converted today, the HDTV stock would be worth about $15,444,000 (@$6.50 per share). I have not been able to obtain a copy of the filing made today (2/9/00) but it may shed some light on the use of the newly borrowed funds and hopefully the paydown of these notes before they can be converted into virtually "free" shares to be dumped on the public. Interest payable to Argyle through August 31, 1999 was $120,433 which was converted into 240,886 shares of HDTV. 100,000 shares were given as a "gift" to an "unrelated third party." Did that party sell their shares like Argyle did in January of 2000? What does "unrelated third party" mean here? Does that mean unrelated to HDTV or unrelated to Mr. O. I can't imagine Mr. O giving over $600,000 worth of stock to a stranger. Also, with such a generous conversion privilege, it is obvious that the conversion of the August 31, 1999 interest payment alone was enough to reward Argyle $1,565,000 for its trouble (@$6.50 per share).... and the balance of the note is still due... not only that, the note was extended to June 30, 2001 and all interest received may be converted to HDTV stock at 50 cents per shares and sold to the public. Yes, that's right, the public -- including the "lonely hearts club" on Silicon Investor. My questions are: (i) can I make a loan to HDTV? and (ii) how long is the line? Here's the volume, price and sale dates for Argyle / Mr. O for January of 2,000 (he probaly sold shares to some of us, remind me to send Mr. O a Christmas card): 112,500 common shares through the open market -- 1/11/00 sold 53,500 at $7.8750 1/12/00 sold 2,500 at $7.9375 1/14/00 sold 5,000 at $7.8750 1/24/00 sold 40,000 at $6.9059 1/26/00 sold 11,500 at $6.9103 As stated previously, Mr. O is a director of HDTV and president of Argyle. Argyle and Mr. O have an "agreement" with 2 companies. The agreement states that Mr. O through his company, Argyle, is to receive a "fee" based on how much money these companies make on HDTV stock. The companies and their locations are: Jalcanto, Ltd., an "Isle of Man Company" Sabotini, Ltd., an "Isle of Man Company" Specifically, Mr. O is to receive "a performance based fee interest in an amount equal to a certain percentage of the net profit or loss on Spatialight securities owned by these entities." My question is, where is the "Isle of Man?" Are these off-shore companies? Now comes the stinky part: Remember HDTV's notes were extended until 12/31/99 (first extension), and later to June 30, 2001 (second extension). One of the conditions for the first extension to 12/31/99 was that "the company has entered into one or more written agreements which will generate not less than $250,000 of revenue for the company prior to December 31, 1999." Well, I was born in the dark, but it wasn't last night. What kind of deal is that when you agree to extend a loan to 12/31/99 and one of the conditions for the extension cannot be verified until AFTER 12/31/99??? -- at the time the bloody extension date has ended we will determine if you have met all the conditions for the extension..... Is anybody watching the store? More to follow....