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Strategies & Market Trends : Steve's Channelling Thread -- Ignore unavailable to you. Want to Upgrade?

To: Logain Ablar who wrote (10354)	1/18/2001 7:10:00 PM
From: Sam	Read Replies (1) \| Respond to of 30051

Tim, <<I thought [SST] would run on printing $18 but it just keeps being held back. I hope the market propells it soon.>> I think Mr. Market is waiting for earnings. If forward guidance sounds good, then I think it will run. However, if it gets back to the high 20s, low 30s, I expect they may resurrect their secondary. I hope it is all equity, but they may need more cash than an all equity offering would give them. They may need to float a convertible (with a fixed strike) in order to get the support of the investment houses (their previous plan was to sell the convertible privately, with a strike of around 30 or 32, if I recall correctly). The problem with that, of course, is that it will cap the stock for awhile, at least until the secondary is done. Then the stock may be capped afterward by the houses getting the private convertible shorting after the stock goes above the strike price. However, all that should be at least 50% higher than it is now, and it is a lot of speculation as well. Sam

To: Logain Ablar who wrote (10354)	1/18/2001 11:48:30 PM
From: Steve Lee	Read Replies (1) \| Respond to of 30051

SSTI at $19.7 at the end of after hours. OK, AH is not a particularly good indicator of next day's prices but better to see it up than down. I had 25% of my net worth in this one when I bought a chunk at $20 3/8 (already had a smaller buy fromthe $30's). Then I watched it go down below $10, buying more just above $14. Never waivered, honest. Made a decision to ride it out and not use margin in my account. No margin makes for a nice stress free life. Had I bought SSTI on margin, that position could have been a complete loss. It is a lesson to me that I would like to pass on.