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Technology Stocks : SYTE - Sitestar -- Ignore unavailable to you. Want to Upgrade?

To: dkgross who wrote (89)	12/16/2000 8:40:16 PM
From: Glenn Petersen	Read Replies (1) \| Respond to of 301

I don't pretend to be an expert on floorless convertibles, but the registration statement notes that "The debentures are convertible into common stock at a rate equal to the lowest of $.70 or 60% of the average of the three lowest closing bid price for the common stock during the 20 trading days immediately preceding the conversion date." For discussion purposes, assume that the applicable bid is $.10. That would set the conversion price at $.06 per share. Divide the $.06 into $985,000 and you are looking at approximately 16.5 million shares. 3,857,274 of these shares were registered on September 1, 2000 and they could have already been dumped into the float. If you look at the September 30, 2000 Form 10-Q, you will see that the company had 25,735,816 shares outstanding as of September 30 and 26,953,657 shares outstanding as of November 14, 2000. There is no explanation for the additional shares. Also note that the company filed an S-8 on November 30, 2000, registering 3.0 million shares to be issued pursuant to the company's 1998 Option Plan. Presumably, these options, which have an exercise price of $.155 per share, were granted to management. Some of these could have been exercised. I can't find any detail in the various SYTE filings. Their next filing should clear up some of these questions. The offer to FASH had no chance of succeeding and I find it curious that they are talking about spinning off their content division. A lot of paper shuffling to generate interest. The above is JMHO and I have no interest, long or short, in SYTE. Just a bit of intellectual curiousity. Good luck, Glenn