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Technology Stocks : Redback Networks, Inc. (RBAK) -- Ignore unavailable to you. Want to Upgrade?

To: StormRider who wrote (1949)	7/8/2003 12:50:39 AM
From: ELH1006	Read Replies (1) \| Respond to of 1956

KG4, Stormrider and others, please chime in about the way I am viewing this proposed restructuring. If I am calculating correctly, it appears that we shareholders are toast. With 182.8 million shares outstanding and a closing price today of 50 cents, total capitalization is $91.4 million. After debt restructuring, shareholders are scalped back to a 5% ownership interest; therefore, based on today's valuation the total valuation, after cancellation of the $487 million of debt is theoretically 20 x $91.4 million or $1.828 billion. At 3-31-03, net working capital was $23.1 million and there were other LT liabilities of $57 million. The warrants look basically worthless at this time. With no tangible book value, hard to believe that the business is worth close to $2 billion. Based on the above, appears to me that we should all be selling as 50 cents is a real premium after factoring in the dilution. Have I missed something here? Eddie