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Microcap & Penny Stocks : All American Semiconductor (semi) -- Ignore unavailable to you. Want to Upgrade?

To: Arthur Tang who wrote (894)	6/13/2000 7:21:00 AM
From: Arthur Tang	Read Replies (1) \| Respond to of 952

Poison pill rights dividend news was received favorably. Semi closed higher. The issue date will be the date that a new instrument or a warrant of Semi trading along side with the stock. However, the conversion price of $95 will put the warrant in the range of pennies. The management is correct that it is a dividend; in the sense that the expiration date of 2010, could make the rights or warrants a valuable asset when stock price rises with the future of semiconductor business. Semiconductor business is not reaching the limit of any economy, anytime soon. All in all, the management made a wise move. Some thing for nothing. The cost of rights issue is not expensive. The stockholders have a dividend however small at this time. The future may make this dividend worth substantially more. It is a poison pill to make acquisition cost on SEMI more reasonable negotiated. Diluted earnings per share may be only half now, but rights will ride up and down with the stock. The danger of owning substantial cheap rights is that when the stock reaches $95, the board of directors can redeem them at the price of $0.001/right. So, at best it is a temporary investment on SEMI's future.