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.

Technology Stocks : Corvis Corporation (CORV) -- Ignore unavailable to you. Want to Upgrade?

To: Iceman2004 who wrote (2754)	11/3/2004 1:38:28 AM
From: bob zagorin	Respond to of 2772

the stock has no constituency right now but i am holding my shares as i still think the basic fundamentals haven't changed. bwng has the cash to move forward with its strategy and i think their TO's have been careful and well thought out. their all optical network plus their balance sheet is worth more than their stock price imo...

To: Iceman2004 who wrote (2754)	11/3/2004 10:34:50 AM
From: Cosmo Daisey	Read Replies (1) \| Respond to of 2772

Hard to be positive about a stock in a death spiral. BWNG is paying debt with unregistered stock. This stock is not included in the float so it's hard to determine how much there is. Latest payment is shares for prin/int. on notes due, about 34.5 million dollars. Number of shares to be determined by average price of stock for 20 trading days before Nov. 15th. The people receiving the stock typically sell short before they get the stock and use the unregistered shares to cover when they are registered one year later. The lower the price goes the more stock they get. This round could be between 10 and 15 million shares depending on how low they push it with shorting. Lets say they short five million shares at average of $6 and can push the price down to $3 with more shorting, They get $3 stock to cover their $6 short. They could make 20 to 30 million extra on the 34.5 million they are owed. This is know as a death spiral.