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Strategies & Market Trends : Floorless Preferred Stock/Debenture -- Ignore unavailable to you. Want to Upgrade?

To: Zeev Hed who wrote (1262)	12/6/2000 1:08:41 PM
From: Puck	Read Replies (1) \| Respond to of 1438

The financing was just announced today, so it must have been issued recently. For the last couple weeks Cellpoint's stock price has been in the $10 range. The percent of their shares reported short most recently was a miniscule 0.4%. I'm somewhat surprised Cellpoint did the financing. They had about $4 mil. in cash and a burn rate of $1 mil./month during the third quarter. However their revenues have been ramping up from next to nothing beginning in the second quarter and it appeared that their burn rate was decreasing and that break even was rapidly approaching. Even though Cellpoint is incorporated in the U.S. their headquarters is in Sweden and they are run by Swedes. The are in the first generation of companies to offer mobile positioning services to individuals and companies. Their product is excellent and I've been quite exhilarated to watch their pioneering contracts begin to come in. Because their product is addressed at wireless carriers using the GSM/GPRS/WCDMA standards, their business is naturally international in scope. They have been aggressively hiring to support their international sales effort, and I think they raised this money to allow themselves the freedom to develop their sales efforts more rapidly than they would have been able to if they were intent on growing internally. I don't believe they needed this money to survive. Given that management is Swedish, I'm not sure they are aware of the dilution dangers innate with this kind of financing. I'm not sure what I'll do regarding my shares. Maybe I'll sell half to reduce exposure and risk but keep the other half in case things turn out well. Thanks for your help-- Puck