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Technology Stocks : LUMM - Lumenon Innovative Lightwave Technology Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Fred McCutcheon who wrote (1913)	7/29/2000 12:21:07 AM
From: Yankee Trader	Read Replies (3) \| Respond to of 2484

Castle Creek has recently been referred to as the "Bad News Bears" on the VLNC board. Don't know why yet, but have a pretty good idea. Will someone please tell me how our honorable and hard working scientists have made this deal with off shore bankers. There must be an element of sleaze with great influence in LUMM. This is not the first time I have had this opinion. Also, this is not the first time a press release from LUMM has had to be restated. With these kinds of things continually happening with LUMM I firmly think it would be in everyone's best interest if the company were bought out. Up until this last release I really wanted LUMM to go it alone but I just don't think that we have the right caliber in the financing/pr end of the business. Jury still out on the technology. YT

To: Fred McCutcheon who wrote (1913)	7/29/2000 12:46:12 PM
From: jjs64	Read Replies (1) \| Respond to of 2484

Castle Creek are to the best of my knowledge convert/discount deal players. My guess is that they will quickly move to hedge out their position, if they have not done so already. The following is for the touts: Considering that LUMM raised 35m in convertibles at 7.5%, which contrary to what the touts are saying, is actually a very high priced, terrible deal. Converts for legit companies are done at lower rates than bonds (since the buyers get the upside on the stock) and at a PREMIUM to market. This is what is referred to as the "Conversion Premium" LUMM's deal is a discount convert, and while not as bad as a floorless, it is still pretty bad. Look at the math, because its important! The investors were given approx. 5m warrants that at time of issue were struck at $10 (remember LUMM was around $22 when the convert deal was struck). What is the value of this warrant position? 5m X ($22-$10) = 5m X $12 = $60m Thats right...$60m in profit just from the warrants right now, and we have not even factored in the converts! While LUMM may have gotten 35m in funding, the investors now have 60m in profits for the warrants. Right now, the investors have made a minimum profit of $25m ($60m - $35m = $25m), and LUMM still have to pay them 7.5% interest, they will make more money still on the discount convert feature, and the common shareholders will STILL be diluted even further. This deal is so ridiculous I can barely contain my contempt. Buyer Beware!

To: Fred McCutcheon who wrote (1913)	7/30/2000 12:51:01 PM
From: John Curtis	Read Replies (1) \| Respond to of 2484

Fred, et.al.: Castle Creek? Wooo weeee! Others such as P. Ram, et.al., have already given you the horror story, but the bottom line is this. Castle Creeks' crew are professional hedgies who have an almost obsessive focus on maximizing return in the shortest period possible. They don't give two ahem about the company whom they've formed a financial relationship. I'll give you two recent examples: VLNC, and WSTL. Both have good "stories," and a great future ahead(imho, of course). But both were in need of financing at one point, and both used Castle. Now....in these cases a floor-less convertible was used. Floor-less convertibles, I've come to understand, are the market-place equivalent of handing your gun to a robber and saying...."Here...rob me..." There's a floor-less convertible thread here on SI, where-in is contained sufficient information as can educate you. The thing to understand is a floor-less is a license by the warrant-holder/financial instrument holder, to short, and short BIG-TIME, using the financial instrument as collateral! Is this the same situation with LUMM? Hmmmm....not exactly, although having a floor at $7 is, from where the security stands now, certainly a support level waaaay far down. Other aspects of the financing, having not read it through yet, may be different, too. Different in such a manner that one need not be too concerned. But even so, Castle and their employees(and those "hangers-on's" who look for Castle "victims" and then initiate their own plans) are professional sharks, so caution in your own speculation style is now warranted. I would not assume they're here to bolster LUMM's progress. I'd sooner assume they're here merely to line their own pockets, come hell or high water. The saving grace? Knowledge is power, and can prevent you from getting....uh....raped. It does make me wonder if LUMM management was cognizant of Castles history at the time they signed on the dotted line. I gotta think it'd have made them pause, eh? Still, WSTL & VLNC survived Castles attack, albeit some investors got badly hurt(they had gambled on margin and such, so when the shorting began in earnest...WHAM!). Both companies are now moving forwards with their business plans in successful fashion. So the same can happen with LUMM. Just keep a sharp eye on those fins rapidly approaching in the waters..... John~

To: Fred McCutcheon who wrote (1913)	7/30/2000 12:59:24 PM
From: John Curtis	Read Replies (2) \| Respond to of 2484

By the way....remember my last post wherein I commented on Castle Creek "hangers ons?" Be prepared for an in-flux of new ID's, using all manner of persuasive styles, bent on creating FUD(Fear, Uncertainty, Doubt). This, too, is part of Castles pattern; albeit one which was never proven to be directly attributable to them. HEH! By the by...I've been following LUMM for some time, and have nibbled at certain lower points. I'm going to maintained my "nibble" core, and am now awaiting certain signals through such as INCA, REDI, etc., which will be indicative that Castle is here in earnest. Now let's see if market conditions can improve tomorrow. John~