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

To: shrtslr who wrote (604)	3/2/2000 4:02:00 PM
From: Foo Bar	Respond to of 903

There is only a commitment to buy 100 filters, U.S. Cellular has the option to buy the other 400. SCON also gave U.S. Cellular Warrants to buy 1,000,000 shares of common stock at $4 a share which is now worth $68,000,000 for U.S. Cellular. SCON is paying big money to get orders!! sometimes when you are small, you need better bate to start hooking. They may not get the order if they didn't give the $4 warrants and the stock will not have shot up to today's level. Hopefully the initial order to uS cellular will trigger other carriers to look into the product deployment

To: shrtslr who wrote (604)	3/2/2000 4:24:00 PM
From: HEP_Ronin	Read Replies (1) \| Respond to of 903

I would be willing to bet money, (and am since I'm long both SCON and USM), that they will take delivery on all 500 filters. Receipt of the warrants is, as I recall, contingent on USM taking the optional orders, so that your post just reinforces the notion that USM will take delivery of all 500. When the deal was made the value of SCON stock was only $3, therefor the warrants were not worth anything unless the stock price would appreciate. Obviously nobody thought that the stock-price would rocket the way that it did. Otherwise, why set the strike-price at $4? Why not set it at, say, $20. SCON has had a run of good luck as far as the stock-price goes which strengthens the company tremendously -- one byproduct being that they'll get the 500 orders. But, as I stated in an earlier post, it should really get exciting if/when SCON gets another order from a second customer.