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Strategies & Market Trends : Roger's 1998 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: DLS who wrote (937)	1/18/1998 3:51:00 PM
From: Roger A. Babb	Read Replies (2) \| Respond to of 18691

DLS, yes HCOM is an example of a floorless convertible. The usual runup just before the convertible is announced and then the inevitable crash. Looks like we were one day late finding HCOM,but it wil likely go on down. Sorry to say I missed this one, it was free money if I had just seen the press release in time. We need to find them in that small window between announcement and crash, usually a couple of weeks.

To: DLS who wrote (937)	1/18/1998 9:16:00 PM
From: WBendus	Respond to of 18691

Wednesday October 29 7:10 PM EST Here is another one of those tricky funding agreements. This aggreement sent the shares of SLIC from around $4 a share to under $0.75 in less than 3 months. Company Press Release Semiconductor Laser International Seeks Expansion of Manufacturing and Distribution with Capital Funding Agreement BINGHAMTON, N.Y.--(BUSINESS WIRE)--Oct. 29, 1997--Semiconductor Laser International Corp. (SLI)(NASDAQ:SLIC - news) announced today it had finalized a multi-staged equity financing program which will provide a net minimum of approximately $3 million to the company, or $4.5 million if a funding option that has been incorporated is exercised. The resulting funds will provide SLI with the capital necessary to broaden its reach into additional market applications, as well as those currently being pursued by the company, such as the rapidly expanding Digital Video Disc (DVD) industry. Dr. Geoffrey T. Burnham, president and CEO for SLI said, ''We are extremely pleased with the financing we have closed. With the availability of this funding, the company will have the resources necessary to tap into applications yielding substantial current and long term growth.'' Under the terms of the financing agreement, the first stage has been completed and provided the company with approximately $1.5 million. The second stage, scheduled to close in December, will yield an additional $1.5 million. Each funding stage involves the issuance of 1 million shares of 8 % convertible preferred stock, which can be converted into common stock on a share for basis through Dec. 11, 1997. Thereafter, the conversion rate is based upon a discount of 30 % of the closing bid price on a five day average prior to conversion. Conversion can be forced by the company on 30 days notice after the completion of an effective registration statement covering the common stock underlying the convertible preferred. The company has also granted an option for the sale of an additional 1 million shares of common stock, exercisable within 90 days after the second stage of the funding has closed. Such sale would net the company approximately $1.5 million additional in funding. A registration statement on Form S-3 covering this financing will be filed by the company in the near future. Statements concerning results of future capital expenditures, production levels, sales levels, total assets, cash flow and earnings are forward looking statements. These statements are based on assumptions concerning production and sales, operating expenses, administrative expenses, interest and other financing costs that management believes are reasonable based on currently available information; however, management's assumptions and the company's future performance are both subject to a wide range of business risks and there is no assurance that these goals projections can or will be met. Further information is available in the company's filings with the Securities and Exchange Commission, which are incorporated by reference.