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Technology Stocks : Superconductor Technologies : SCON -- Ignore unavailable to you. Want to Upgrade?

To: Jim@Inland who wrote (287)	2/17/2000 3:37:00 AM
From: Jim@Inland	Read Replies (1) \| Respond to of 903

The prospectus is great reading: "The offering price will be 3.25 per share" "Superconductivity is a physics phenomenon" "the markets for our products is intensely competitive" "we need to raise money to continue operating" "and if we fail to do so we will have insufficient cash to fund operations. our independent auditors have indicated that, based on generally accepted auditing standards, there is substantial doubt about our ability to continue as a going concern." "If we are successful in obtaining additional financing, future dilution to existing shareholders is likely to result" It goes on and on, more in a minute or two

To: Jim@Inland who wrote (287)	2/17/2000 11:06:00 AM
From: SkyDart	Respond to of 903

Jim, When a company says they need to raise money to operate, it often means they are growing so rapidly they require operating cash. Take a look at ALGX or Alegiance Telecom. Growing at 1000+% per year. They issued a secondary offering at 35 dollars per share last Spring to be able to build out the CLEC market. There is a tremendous first mover advantage in CLECs. How did it [having to raise capital with a secondary and then doing it] affect ALGX? Judge for yourself: #1. Royce Holland, CEO of ALGX, who BTW founded UUNET, and made virtually all of his original employees millionaires [from Janitors to secretaries; gave them stock options for pennies] also founded ALGX. UUNET was ultimately sold to WCOM. #2. The stock recently hit 140. Up from IPO price of 9 less than 2 years ago. Up 300% from secondary offering price. FWIW: I took my small 56% profit in SCON and have purchased CDTS today as it will likely runnup next. Good Luck, Dart