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Technology Stocks : Forecross Corporation : Y/2000 -- Ignore unavailable to you. Want to Upgrade?

To: AD who wrote (845)	4/7/1998 3:26:00 PM
From: Richard Moore	Read Replies (4) \| Respond to of 1654

It seems like Forecross will be in receivership soon, based on last financial statements  all their receivables to third parties have been factored at 24%  they have no cash, and current liabilities near three million  they are now borrowing from directors at 24%  they lose money every quarter and year 2000 is coming up fast  the auditors have qualified their audit on the company report, saying company is not a going concern, which kills any listing in the U.S. With 12,000,000 shares out there, why is this company worth $150,000,000? Something funny must be going on in the trading?

To: AD who wrote (845)	4/19/1998 10:01:00 AM
From: TEDennis	Read Replies (1) \| Respond to of 1654

I just now finished reading through the April posts on this thread. There's nothing concrete in this post ... just something to think about. I found it interesting that nobody commented on the news that this response is posted to. Forecross adjusted Incentive Stock Options (ISOs) downward. In some cases, the downward adjustment was over 40% ($19.00 to $11.15). The stated purpose was to "attract and retain the most qualified employees for Forecross in a competitive labor market". First of all, reducing ISOs that have already been issued won't attract any new employees. The new employees will be issued ISOs for the stock's market value as of their employment date, or close to it. Unless, of course, there's something funny about the VSE regarding issuance of ISOs. This downward adjustment will only have an effect on existing employees who were granted ISOs last year when the stock was at higher levels. To me, this means that Forecross' existing employees are having trouble visualizing their company's stock at over $19 in the future. ISOs are typically vested over a few years' time. If the employees have faith in their company/product/management, then they should be convinced their stock will rebound and trade at higher levels. On the other hand, maybe this will attract new employees. I'd like to go to work for a company that promises me that no matter what price the stock is at now or in the future, my ISOs will be adjusted lower. That's a no-lose situation. Sort of. Interesting, eh? TED (Setup for somebody's #900)