Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT -- Ignore unavailable to you. Want to Upgrade?

To: Michaelth1 who wrote (17081)	9/20/2000 6:30:03 PM
From: SGJ	Read Replies (1) \| Respond to of 29987

<But one usually doesn't tap the equity markets (and receive only about .90 on the dollar) unless few other options are available> There you go again Michael. Its not a matter of the market being the last resort of equity, its a matter of what type of vehicle makes the most sense at any given time. Its also nowhere written that I know of that raising money in the market is exclusive of any other source. <Assuming the partners are going to put in a total of $250 million (down from $350 because of the BS deal), who is putting in what?> I really don't think this question can be answered today. Its all just speculation. I think G* has to show traction of some type of another and that time may not be here yet. When that time comes the partners will make their decisions based on the situation as it exists. The money isn't needed yet remember? BLS just put one tool in his belt with the Bear Stearns deal. There may be more as time and need dictate. It may be difficult to accept, but some questions regarding financing just can't be answered in the present. Plans though, can be made. Bear Stearns is PART of a plan.

To: Michaelth1 who wrote (17081)	9/20/2000 7:05:50 PM
From: BobRealEstate	Respond to of 29987

Mike, are you crazy? .95 cents on the dollar for equity financing is as good as it gets except for maybe old old blue chips (IBM, MMM, etc.). Some 'net IPOs give away 40-70% of the co. in warrants to the underwriter. In a straight secondary underwriting, you can expect 88 to 93 cents on the dollar. I know, I was in the business. No aspect of this financing is in and of itself negative. Period. Anything can be spun negatively. "Sunny days mean increased melanoma risk"-this is about as hard as you have to spin the financing to make it a negative.