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

To: telebob who wrote (1919)	1/30/1998 10:56:00 AM
From: posthumousone	Read Replies (1) \| Respond to of 18691

TERA short - whose behind the stock ? what investment house promotes this company ? who did the private placement? any idea?>>>> ok you seemd interested, maybe we can exchange info and you can teach me something........... HJ Meyers was original underwriter (yikes) BUT in june tera called their warrants 3 years early.....raised 11 M.....but i guess that simplified their structure enuogh so that Salomon could initiate coverage.....soooooooo.BAM 8/7/97 Salomon initiates coverage with price at about 5 .5 with 10-12 target rate and BAM stock goes to 12 in about 2 weeks........Salomon readjusts there target to +30 IF tera can meet milestones (please see TERA thread for details) price peaked at 18 shortly thereafter but fell and traded 12-14 till NOV when HJ started hammering away on COLD calls...then traded 14-17....things looked good, i thought theyd meet Salomons milestones by end of year....BUT TERA stumbled again and DID NOT deleiever there prototype on schedule (already a year behind) so they needed to raise cash, AGAIN-------- the private placement was to: Advantage Fund II Ltd. 667,296 667,296 -0- -0- Genesee Fund Limited - 285,984 285,984 Does that mean anything to you? from IBD dec short int. 84,461 jan short int. 132,066 +55% increase note this is before NASDAQ listing (moved from small cap to Naz on 1/20/98 here is my take after reading the filing, does this make any sense??? the lower the price goes the better for the private placement investors......they get more shares!!!!!! see filing they (or someone) short, drives the price down on low volume.......they get to convert at low price of 5 consecutive days, "regular way?" (anyone know if its based on the close price or intraday price).........therefore they are begging for a lower price they convert at the low price and cover thier short position along the way driving back up the price and BAM instant big profit on those shares that were converted at the lower price....remember, even if when they convert at the Low price, they have a minumun 10% profit right away based on Filing...... now with all those shares sitting on a MIN 10% profit, more likely 20-30%, after only about a months time of being invested in TERA, they can take some profits or start writing options as listed in the private placement details its all in the filing!!!!!!!!!!!!!!!!!!!!: when the investors convert ..... "sales may be made on one or more exchanges or in the over-the-counter market (including the Nasdaq Market), - in privately negotiated transactions, (hmmmm whats that really mean) - through the writing of options on the Shares, (setting up todays option news - otherwise at market prices then prevailing (makes sense) - or at prices related to the then-current market price, (dont undestand the diffence here from prevailing....what they can sell at higher price then current price??) - at fixed prices that may be changed, (sounds fishy to me) - or at negotiated prices. (suppose that means big lots to institutions, brokers?) To who? "The Shares may be sold to or through " - brokers or dealers, who may act as agent or principal, - or in direct transactions between the Selling Shareholders and purchasers. Can they short? "In addition, the Selling Shareholders may, from time to time, sell short the Common Stock, and in such instances, this Prospectus may be delivered in connection with such short sale and the Shares offered hereby may be used to cover such short sale." will the HJ and market makers profit? why yes: "Such brokers or dealers may receive discounts, concessions or commissions from the Private Placement Investors and/or the purchasers of the Shares for whom such broker or dealer may act as agent or to whom they may sell as principal, or both (which compensation as to a particular broker or dealer may be in excess of customary commissions)." (read get me a good negotiated price as stated above and we will slip you some green---i guess this is ok because they were "deemed underwriters") will TERA as a company recieve any additional $ from 9M private placement? No: "None of the proceeds from the sale of the Shares by the Selling Shareholders will be received by the Company." (will board of directors individually recieve $ for setting up this sweet deal? probably against the law, but what do i know) why has the stock slipping now (besides the obvious didnt deliever)? shorting: "the Selling Shareholders may enter into hedging transactions with brokers or dealers and the brokers or dealers may engage in short sales of the Common Stock in the course of hedging the positions" Disclaimer? "The Company and the Selling Shareholders each have agreed to indemnify the other against certain liabilities, including liabilities arising under the Securities Act." I have no idea if this is normal everyday transaction.......but i find it fascinating to see how this works and how you may be able to anticipate what is upcoming for stock price thx