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Technology Stocks : Data Race (NASDAQ: RACE) NEWS! 2 voice/data/fax: ONE LINE! -- Ignore unavailable to you. Want to Upgrade?

To: drakes353 who wrote (27794)	2/8/1998 11:28:00 PM
From: Marshall	Respond to of 33268

Drakes - I think a point comes where one could have too many shares making it virtually impossible to get your money back. Since any conversion price is based on a trailing average they could end up getting shares that are worth less than what they "paid" for them and we know they wouldn't accept a situation like that. A couple of us have been playing around with the math on this thing and it appears there's an incentive for the share price to move up rather than down. Of course one could suggest they want to convert for the maximum number of shares and hold until events come along to move the price up but as you've said yourself - when a private converts it's usually to sell them as opposed to taking the risk of holding them. Um, your $5 clock doesn't apply if they have $4M in tangible assets. As long as they have that level it's only a $1 bid requirement and my guess would be they only review the tangibles level each quarter from the 10-Q's thus we're talking April or May. Ask RACE? If they have some things cooking I'd think they want them to be their surprises.