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.

Biotech / Medical : ACMI - Accumed Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Bill Brogan who wrote (1468)	2/23/1998 7:54:00 PM
From: CARYTRE	Read Replies (2) \| Respond to of 1894

Bill, This is good news under the current circumstances. The net equity deficiency is now behind us. The company has eliminated long term debt and replaced it with a hybrid equity. While this will bring about imminent dilution, I believe the convertible notes that this replaces also had the potential for equity dilution, although at a higher conversion price undoubtedly. Convertible stock usually has a dividend attached, which is paid when earnings are positive. Otherwise dividends fall into arrearage, and accumulate until earnings can support payment. Being that the conversion price is so low I'd bet that these will be converted to equity in the near future. So there will be little dividend accumulation anyway. The upside is that book value just went up by $4mm. The downside is that your ownership in the company just went down by 20%, thru the imminent addition of 5mm shares. I think it is also likely that the warrants expiring in march? will not be extended because the company does not need the funds for the purpose of shoring up its net equity any longer, which I believe was the reason for extending their expiration to begin with. So that is another thing not to have to worry about. BULLISH!! C.S. PS - I'd put good odds of the stock rebounding nicely thru the course of the week, with a gap opening tomorrow.