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

To: Pancho Villa who wrote (4911)	3/13/1998 7:19:00 AM
From: Dale Baker	Read Replies (1) \| Respond to of 18691

This CEO is virtually begging to have his stock shorted (symbol is ZNET). Oops, just saw it trades on the OTC-BB. Too bad, would have been fun. Any Canadians want to have a crack at it? Technology News Fri Mar 13 07:07:38 EST 1998 BN 3/12 Cybernet Says False Takeover Rumor Sent Its Stock Up (Update1) Cybernet Says False Takeover Rumor Sent Its Stock Up (Update1) (Updates with closing price. Adds company background.) Munich, March 12 (Bloomberg) -- Cybernet Internet Services International Inc.'s chairman said a false takeover rumor sent shares of the German Internet services company soaring 28 percent percent today. ''We're not aware of anyone trying to take us over,'' said Cybernet Chairman Andreas Eder in a telephone interview. ''We're not in negotiations with anybody.'' He said the rumor is being spread over the Internet. Cybernet gained 5 3/4 to 26 in trading of 136,400 shares, about nine times its average daily volume for the past three months. Earlier, it traded at an all-time high of 34 1/2. It closed at 13 7/8 just last Friday. ''We're very concerned about this'' Eder said. ''We don't see this price as realistic.'' Eder said the company's soaring share price could harm efforts to raise $30 million to $50 million in equity capital. ''We'll have problems selling to institutional investors if the price is so high,'' said Eder. Cybernet, which isn't followed by any analysts, commanded a market value of $759 million at its high. It has 22 million shares outstanding. The Munich-based company's most recent financial report covered 1996. It lost $281,790 on revenue of $301,810. It trades on the OTC-Bulletin Board, which has no listing requirements, as well as the Munich Stock Exchange. Cybernet will report 1997 results next month, said Eder. In an interview with Bloomberg last June, he predicted 1997 revenue of $5.5 million, with a loss of $1.9 million. Eder declined to comment on 1997 results today. The company, which has raised $10.6 million since it was founded in late 1995, has fewer than 5,000 customers, he said. In addition to providing Internet access for businesses, its 90 employees develop corporate intranets and provide consulting services on electronic commerce and online marketing. In September, it raised $9.8 million by selling 1.4 million $7 units consisting of a share of convertible preferred stock and a warrant to purchase half a common share for $8. Each preferred share is convertible into a share of common stock. Cybernet's rise boosted the stock of another German company. Shares of Berlin-based Cybermind Interactive Europe Multi-Media Service AG, which owns 25 percent of Cybernet, gained 30.2 DM to 82.1 DM today in trading on the Berlin Stock Exchange. Cybermind's 5.5 million shares of Cybernet are now worth about $143 million, almost as much as the total market value of Cybermind's own shares. Cybermind designs and markets training software. --David Evans in Los Angeles (310) 827-2348 with reporting by Renee Cordes in Frankfurt through the New York newsroom (212) 318- 2300.ltk