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

To: Kaliico who wrote (20500)	2/15/2000 11:05:00 AM
From: Wendisman	Read Replies (1) \| Respond to of 57584

Kal....on SCON I agree with their potential in a great market sector....however, I have some reservations about buying at this level. What's your take on the recent share sale?....which equated to 2+ mil. shares at about 3.25....my first reaction is SWIB bought well, and that SCON was cash-strapped enough to throw the shares away at this price....maybe the deal was negotiated (or at least locked in $$) during the period prior to its price movement at the end of last year.... Although I don't like small investor sentiments when it comes to my ultimate investment decision, it seems that many are short-sited enough to look at this 3.25 and see that as current company valuation (by the company)....and hence sell now.... I like this...."The 200+ systems that we have in, right now, have over one million hours of accumulated time in the field right now. These are systems owned by customers, not trial systems." Have you found a customer list? I only find U.S. Cellular and some DARPA on the homepage.... Negatives look like all the financing levels they have danced around, including the deal with U.S. and the issue of warrants...."Under the terms of the purchase agreement, U.S. Cellular will purchase a minimum of 500 SuperFilter© systems over the next five years, and anticipates purchasing a minimum of an additional 400 SuperFilter© systems over the following four years. As part of the agreement STI will issue U.S. Cellular a warrant, subject to vesting provisions, providing for the purchase of up to one million shares of STI common stock at a price of $4.00 per share. Under the terms of the warrant U.S. Cellular will be entitled to purchase, one share of STI common stock for every $25 worth of SuperFilter© system purchases made by U.S. Cellular." And the private placement in September....I know, I know, a company (like LPTHA a short while ago) doing what it has to for the sake of keeping the wheels turning. I just keep getting that twitchy gut when I see financings of this type so close to this current run, and no big contracts on their own home page, and.... I like what I have read thus far about SCON, and I am beginning to sense your LPTHx excitement....but I will probably set my buying lower than this level....even if I miss it, I just don't have enough experience to feel comfortable at this price.... Unless you have found some compelling info that my brief reading has afforded me. Thanks, Wes

To: Kaliico who wrote (20500)	2/15/2000 11:05:00 AM
From: Steven Finkel	Read Replies (1) \| Respond to of 57584

For those with more market experience than I, what, if anything does it mean when a market maker keeps a very wide spread? For instance, plcop is at 3.19 ask 3.19, but bidding only 3.03. Isn't that almost criminal? Edit: Just thinking about it, I am sure that it would discourage buyers as they know they are immediately down a bit after buying. Does this have any implications for mm inventory? Although in this case (given the conversion) I am not sure that the spread matters as much.