SCON: Work in Progress advanced copy, excuse our dust:
SCON the 3rd: It's a bird, it's a plane, it's the Hindenburg without the warning labels. All aboard?????
The Truthseeker first reported on the marvels of SCON back on June 26th and July5th when SCON was in 35-40 dollar trading range.
Message 13944562
Message 13994838
Since then there has been not to much news. News of a " 'dog and pony'-telecom-single- day-pitch-it-to-investors-show along with 44 other companies with three showroom operation at the same time DEAL will take place on the 24th. And on SCON's website they are talking earning discussion with investors on the 26th. That should mean earnings will come out too. Its been a long 7 years since the IPO in 1993, and not a single quarter-end with a profit. Don't make the mistake thinking this is a startup, the routes of the company are founded clearly in the 1980s. The stock closed on Friday the 21st at 26 5/16.
The aspects involving superconductors related to SCONs competitors making stronger headways in this already niche marketplace.
-----
SUNNYVALE, Calif., June 29 /PRNewswire/ -- Conductus, Inc. (Nasdaq: CDTS - news), a leading manufacturer of superconducting wireless systems, announced today the first third generation (3G) field trial of its ClearSite® system in Japan. The field trial, which was completed in cooperation with KDD Corporation, KDD R & D Laboratories, Inc. and Hitachi, Ltd. in December 1999, demonstrated dramatic reductions in the effects of interference on 3G base station performance. In these tests, the Conductus ClearSite system provided significant improvements in coverage, capacity, bandwidth, handset power and bit error rate, all of which can be drastically degraded due to interference from Japan's existing Personal Handyphone Service (PHS).
------
This is very interesting in light of SCON's lack of attempt to bid for the Japanese market.
See below
-------
stockhouse.com
StockHouse: Isn't there a situation right now that Illinois Superconductor might get the business from NTT?
Charlie Shalvoy: Well, NTT [NTT] came to all three of the superconductor companies and gave us a very difficult stack and asked us to produce a prototype unit for them to evaluate. They went to Illinois Superconductor, us, and they went to Superconductor Technologies [SCON]. Now, Superconductor Technologies uses thin-film technology also, but quite frankly they have not progressed as far with thin film as we have. They no-bid the Japanese opportunity. We bid it and ISCO bid it, and we have systems in Japan, just like ISCO does.
------------
So to summarize we have a modest company that have never shown a profits in the 7 years since its IPO with sales of 7 million dollars last year, and 14 million dollars loss, with a total current capacity to sell 1500 (at best) filters, which sell for 20K each, which gives a max earning potential without undertaking serious Manufacturing expansion of about 30M sales per year. The analyst that predicts 40M sales in 2002, gives the company a 2.625 Billion dollar Market capitulation target. As TheTruthseeker detailed earlier, the largerst customer of SCON receives in essence its filters for free so long as the stock price exceeds 29 dollars per share. It can be assumed that the deal with US Cellular was to get others to jump in, however while all the major companies have tested the SCON equipment, no others have made firm commitments.
Again this story is like a thousand other stocks. Companies without profits, with truly modest products, that burn down The Street's invested capital.
Lets take a look at some of these deals of deals.
HOW CAN YOU BUY STOCK AT 30% IT TRADING VALUE?
Sorry you can't. But these guys get too.
COMMON STOCK
This prospectus relates to 2,473,701 shares of Superconductor Technologies
Inc. common stock that we are offering to The State of Wisconsin Investment
Board and a limited number of other purchasers. The offering price will be $3.25
per share. Superconductor will receive all of the proceeds from this offering.
Our common stock is traded in the Nasdaq Stock Market National Market
System under the symbol "SCON." On February 8, 2000, the last reported sales
price of our common stock on Nasdaq was $12.00 per share.
Investing in our common stock involves risk. See "Risk Factors" beginning
on page 7.
Proceeds to
Price to Purchasers Superconductor
-------------------- -------------------
Per share.......... $ 3.25 $ 3.25
Total.............. $ 8,039,529 $ 8,039,529
Neither the Securities and Exchange Commission nor any state securities
commission has approved of or disapproved these securities, or determined if
this prospectus is truthful or complete. Any representation to the contrary is a
criminal offense.
We expect to deliver the shares of common stock to the purchasers on or
about February 9, 2000.
DO YOU SEE THAT? Stock is trading at 12 bucks and they sell for 3.25. Great deal. But why what did they say earlier WHY oh WHY?
Well they filed this on January 4th 2000.
This prospectus relates to 2,888,800 shares of Superconductor Technologies
Inc. common stock that we are offering to The State of Wisconsin Investment
Board and a limited number of other purchasers. We anticipate that the offering
price will be between $2.00 and $3.25 per share. We anticipate that the actual
purchase price will be 95% of the average of the closing sales price of our
common stock on the Nasdaq Stock Market National Market System for the 30
consecutive trading days ending on the day prior to the date of this prospectus.
Superconductor will receive all of the proceeds from this offering.
So that is it!!!! Must be the 95% of the trading value of the stock. Even though that was filed on the Jan4 the stock was already in the at 6 dollars at the opening bell. SCON sold shares at 3.25 when it was trade at 12 bucks. It had to be for a good reason, right, it has to be that 95% thing? Right??
WRONG!!!!
The 30 trading days prior to the Feb 9 completion. 95% of the average closing price was $7.40, which is still double the $3.25 that SCON gave away the shares at.
Date Close
9-Feb-00 12.0000
8-Feb-00 12.0000
7-Feb-00 10.0000
4-Feb-00 9.1250
3-Feb-00 9.3750
2-Feb-00 9.7500
1-Feb-00 8.2500
31-Jan-00 7.8125
28-Jan-00 8.6250
27-Jan-00 8.6250
26-Jan-00 8.7500
25-Jan-00 8.9062
24-Jan-00 9.4375
21-Jan-00 9.3750
20-Jan-00 8.8750
19-Jan-00 9.3750
18-Jan-00 8.0000
14-Jan-00 6.6250
13-Jan-00 6.3750
12-Jan-00 6.4375
11-Jan-00 6.2500
10-Jan-00 6.8750
7-Jan-00 6.1250
6-Jan-00 6.1250
5-Jan-00 6.6875
4-Jan-00 6.0625
3-Jan-00 5.7500
31-Dec-99 4.8750
30-Dec-99 4.1250
29-Dec-99 3.0625
233.6562
30.0000
7.7885
0.95
7.3991 |
