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 : Shorting stocks: Broken stocks - Analysis -- Ignore unavailable to you. Want to Upgrade?

To: drakes353 who wrote (800)	12/18/1997 8:32:00 PM
From: Mike Harkness	Read Replies (2) \| Respond to of 2506

Here is a good short. Atmel(ATML) The people on the ATML thread ridiculed me for suggesting it. Here is a chart primenet.com primenet.com

To: drakes353 who wrote (800)	12/19/1997 1:47:00 PM
From: drakes353	Respond to of 2506

Hey folks: Anyone with an interest in BINC should check out the 8-K they filed yesterday on their $3 million financing. Still going through it but it looks like the buyer paid $8 per for units consisting of two shares of common and two warrants struck at $4 a share. Hmmmmm. Here's a little quick and dirty analysis....with the stock is at say $5.25 the warrants have $1.25 of intrinsic value (that's the "in-the-money" amount), subtracting $2.50 from the $8 cost of a unit gives you a cost of $5.50 for two shares of common. Divide by two and I come up with a cost per share of $2.75 which represents a whopping 47% discount to the current market price. Yowser. Nothing in the document prevents shorting against their positions. There is no predefined holding period. Obviously they need to register the shares and warrants but I don't see anything (besides low volume) standing in the way of some signigicant shorting in the not too distant future. Fade all rallies, looks like we're headed down to $2.75.... drakes353