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Technology Stocks : CDRD (CD Radio) -- Ignore unavailable to you. Want to Upgrade?

To: Russian Bear who wrote (308)	11/12/1997 10:37:00 PM
From: Dale Baker	Respond to of 904

I haven't read every CDRD filing in detail because they file too often; but the last one I noticed had lowered the consent required to 60%, not 50%. So either a later filing dropped it to 50% because that's what they knew they could get, or they are announcing (begging, really) that they just need a few more so their stock doesn't get trashed. Have to dig into Edgar again. Anyone who finds anything, please post. If 60% is still the magic number they can't do ANYTHING without more votes.

To: Russian Bear who wrote (308)	11/12/1997 10:44:00 PM
From: Dale Baker	Respond to of 904

The last filing was November 6 and still says 60%: edgar-online.com

To: Russian Bear who wrote (308)	11/12/1997 11:25:00 PM
From: Candle stick	Read Replies (2) \| Respond to of 904

Bear and Dale, here is what I found: 1) Dale is correct. Somehow the original provision of 95% was reduced to 60%. It was filed on Nov. 6th..... This Supplement (the "Supplement") amends and supplements certain information contained in the Prospectus dated October 16, 1997 (the "Prospectus"). The Prospectus is hereby amended by the terms of this Supplement and the matters addressed herein supersede any contrary statements contained in the Prospectus. Defined terms used herein and not otherwise defined shall have the meanings assigned to them in the Prospectus. This Supplement amends the conditions of the Exchange Offer as set forth on pages 1, 14 and 49 of the Prospectus by conditioning the Exchange Offer upon a minimum of 60% (instead of 95%) of the issued and outstanding shares of the 5% Preferred Stock being tendered for exchange and not withdrawn prior to the Expiration Date. Exactly how they did this I dont know. But still, todays announcement amounts to nothing more than blowing smoke. They have 50% or a little more. NOT 60%. The deadline is Midnight Friday. Now, the importance of this is the secondary. In order to go forward with the secondary CDRD needs approval by 60% of the current preffered holders. This could actually be even better for us shorts. Think about it. They get the bare minimum preferreds to accept the new peferred. That still leaves 40% (3.7 million shares) that WILL convert and sell. The rest take the new preferred ( which pays 10 1/2% interest vs. the current 5%). AND the secondary now has enough proxies to go forward. Thats another 3.5 million shares to be sold at a later date, probably less than 60 days away, in my opinion. Of course, if they dont get 60% to accept, then we will see 9.3 million shares added to the float. I think the stock price will tell us the story tomorrow. It was weak today and closed the low at 20 5/8....thats 5+ points off the recent highs. If todays news was really good I am sure it would have been "leaked" and we would have seen more buying at the close , not selling. As it was, the retail houses were selling CDRD all day, including Merrill Lynch, who is the underwriter for the secondary. Watch for the open tomorrow. If todays news is really something great the stock should gap up at the opening......otherwise its nothing more than another press release among dozens recently produced to prop up the stock. In any case, its just a few more days before Emperor will be seen to have no clothes! DILUTION is inevitable, and in this current market environment, I dont believe it will be well received.....hang in there, the big payoff is coming soon. I am looking for 8 -11 dollars by yearend.....best of luck......;^)