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Biotech / Medical : BIOTECH & TECHNOLOGY INVESTING *UNDERVALUED*{T/A F/A & V} -- Ignore unavailable to you. Want to Upgrade?

To: tuck who wrote (271)	3/10/2000 6:14:00 PM
From: BRAVEHEART	Read Replies (1) \| Respond to of 423

Hi Tuck, Some Thoughts on LOR... This is not your typical conversion type stuff. Most convertible type fundings like NEOP concern a formula to derive shares for convertable preferred. Which then are often not always sold into the open market. With LMT you are talking 35,000,000 shares. That's a lot of dilution any way you look at. I would think LMT is prepaired to take a partial discount from the $13 to divest from LOR & satisfy the legal umbrella. The market is interpreting this as a valuation of LOR & fears dilutionary pressures. Herein lies your undervaluation. Another key is where is this stock going to end up. In the open market??? Or in the hands of institutions. My guess is a little bit of both. So now I would expect the stock to drop say 25% below the $13 or to $10 as a safe lowballer entry point. Another key factor is determining the direction of LOR & it's market segment. In a relative sense DSCM is looking at 13% dilution of the total shares outstanding too. However the difference is in the float. The low float of stocks like DSCM allows for more rapid price appreciation which attracts buyers to absorb the added dilution. The market treats the float relative to the business model as if there were a one to one valuation relationship. The Yahoo chant "Low Float" kinda applies to my theory. Looks like a great add to both the watch list & a good buy to the recommend list. Tuck since you targeted LOR would you go through the motions of adding it as a recommend. It is worth picking up @ some point IMO. Looking at the chart it looks like the downgrade was timed with the conversion figure. Lower price more shares. It is also key in knowing what LMT gave initially for it's shares. If it was $6 dollars in value a conversion & selling into the open market will create an even greater opportunity once absorbed. So this is still a two edged swored. I just dug up a stock that is going through a conversion scenario. I am digging a little deeper. They converted recently at a buck & the stock soon there after ran up to $6 or $7 In one day ( no not PCTH ). Same thing happened earlier this last year. Only way for them to raise some cash. I have to read the SEC stuff but I understand they have at least another 50% portion remaining. It is now trading at $2 with a very { yahoo chant } "low float". Decent business model. Decent concept unraveling. I have to understand the terms to determine an entry point. Looking to see where they are going to knock it down to etc. I'll be back on this one soon. Looks like the potential for 400% returns or better if they run it like they did the last time... : ) BEST WISHES Jeffrey