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.

Strategies & Market Trends : Roger's 1997 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: Pancho Villa who wrote (7394)	11/21/1997 12:53:00 PM
From: ted free	Read Replies (2) \| Respond to of 9285

Pancho- I have been looking at BFIT for about a week . I agree with all you say however I'm not sure it will go down that fast. I'm not versed at reading SEC forms so if any of my observations are incorrect I would appreciate feedback from anyone. The recent $200 mil in note has no principal due until 2003. I am a member of one of there clubs and they need to do a lot of upgrades as they state. I haven't seen much happen over the last 2 years in the clubs I go to in the way of upgrades. The supposed upgrades can hide a lot of expenses making financials look better than they are buy providing excuses. Lifetime fitness has put in a new club close to me and it is really a super place. The dues are a lot higher but they attract a better class of people that don't care in many cases how much it costs. Talking to friends in my area most are joining to Lifetime Fitness. The following is from form 454(b) { After the Offering, 19,521,116 shares of Common Stock will be outstanding(assuming the Underwriters' over-allotment option is not exercised). At that time, the Company will also have (i) outstanding options to purchase 1,255,978 shares of Common Stock with a weighted-average exercise price of $4.25 per share, and (ii) the ability to grant options to purchase an additional 268,067 shares of Common Stock under the Company's stock option plans. In addition, the Company will have outstanding warrants to purchase 2,942,805 shares of Common Stock at an exercise price of $5.26 per share. The warrants are held by the Chairman of the Board and the President of the Company and are exercisable until December 31, 2005. Further, the Company has issued warrants to purchase 250,000 shares of Common Stock to an affiliate of one of the Underwriters in connection with a loan to the Company. See "Underwriting". The effect, if any, on the market price of the Common Stock prevailing from time to time as a result of the additional shares of Common Stock that would be outstanding upon the exercise of stock options and warrants is unpredictable, and no assurance can be given that the effect will not be adverse.} Looks like further dilution down the road if they need to raise more cash. Why did they have a stock offering and notes, why not finance it all with stock? It seems to good a short to be true? They have low funds sponsorship and float seems ok. I feel confident enough to short but am concerned that I am missing something. At present short GTW and YHOO. Regards, Ted Free