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Gold/Mining/Energy : JAB International (JABI) -- Ignore unavailable to you. Want to Upgrade?

To: MSo who wrote (3443)	4/10/1998 10:14:00 PM
From: Marc D.	Respond to of 4571

If another reverse split is in the works, kiss your golden butt good by

To: MSo who wrote (3443)	4/10/1998 10:18:00 PM
From: IRVINESULLY	Respond to of 4571

Hi all... I'm a little uncomfortable also. Especially in light of the fact that no one has been able to contact Lionel, or at the last contact, it wasn't mentioned. Someone mentioned that management wouldn't do anything underhanded. I am not suggesting that they are, as I do not have the facts at the moment. But if you remember what the last management did, and what happened afterward? I'd certainly like to know who those shares were issued to. I also agree, if they are finding gold, and have all the gold stock piled, why the need for more shares? And if Sterling has all these cheap shares, plus a percentage, they can afford a reverse split and still come out smelling like a rose... It will be all the holders who bought in the past 6 months that will be hurt big time, and will probably sell unfortunately, and someone like Sterling will scoop them up. I'd very much like to know what is going on. If you had a gold find, and continue finding more and more gold, and some of it very very good once per ton, and have a large stockpile, and Sterling giving you payments on schedule, why would you want to further dilute the shares? I'm not saying I smell a rat...just saying that I would like very much to assess this situation and find out what is going on. I can try calling Lionel next week, but I am not sure if he will take my call...in lieu of the fact that I suggested I might throw a rock at him <LOL>...but he knows that I can't do that over the phone...I like the idea that between all of us, and even more out there not in SI, we probably have quite a good number of shares...so maybe we can exert a little pressure on the company to tell us what is going on. I'm not suggesting mutiny...but money/stock talks! I'm hoping maybe there is a very good reason that will make sense to us all. The worse part is always being kept in the dark. It always leaves things to people's imaginations...which is dangerous <g>...It would be nice I guess to hear someone's "good" imagination/take of this situation.. I'm just not sure I am the person.. Take care and have a great weekend everyone...hey, it's only money...not the end of the world..just the financial one <G>.. Ginny

To: MSo who wrote (3443)	4/10/1998 10:33:00 PM
From: Marc D.	Read Replies (2) \| Respond to of 4571

If another reverse split is in the works, kiss your golden butt goodbye.

To: MSo who wrote (3443)	4/11/1998 1:24:00 AM
From: DDS-OMS	Read Replies (2) \| Respond to of 4571

Mike, "...but he has in inherent conflict of interest..." Not quite sure what you mean by that--I am long BCMD like many others here--and probably a lot more at risk than most. The PP has NOT been registered yet--and only those that have already held more than 1 year can file a 144 and sell--and I am not one of those. If you mean, as a "long", I don't want to see BCMD's price fall--you're right--and I'm sure this conflict is shared by all other longs. I have been on the short end of the stick twice on the TYPICAL Reg S financing and they can be brutal if you sell while the stock is declining. I've written 2 paragraphs and then deleted them trying to explain Reg S or D financing. It's complicated and hard to explain, and all interpretations I've read on SI or Yahoo tonight are flawed. The usual Reg S is a "debt" incurred whereby the company receives money, and agrees in 40 days to start issuing equity (shares) at a price determined by a percentage discount to the average closing price for the previous 5 days. Typically, it is 15-20% less than the average price. Example: A company gets $10,000,000 and the current stock price is $5.00 In 40 days, the "foreign investors" cash in, say, a $1,000,000 "chit". If the price is still 5.00, they get $1,000,000 / ($5.00 X .80) or 250,000 shares which they immediately sell--(probably already shorted at $5.00 and use these shares to cover) = net $250,000 profit. Say this drives the price down to $4.25 Then they submit another "chit" for $1,000,000 and get 1MM/(4.25X.80) or 294,000 shares. These are sold, netting them their guaranteed 20% profit, and the scenerio is repeated 8 more times and the stock price is then around $1.00--but they always get their 20% profit and don't give a damn how low they drive the price or how bad the dilution is. When the price is $1, they are getting 5 times as many shares issued per 1,000,000 as they did when it all started. Theoretically, can be almost an infinite dilution. There is a HUGE DIFFERENCE in how this BCMD Reg S is structured. The shares are priced at 30 cents--regardless of stock price when they become tradeable. They have NO incentive to sell and kill the stock price--they will not drive the price below 30 cents and lose money. The dilution is known--it is 4.5 million shares---no more. The only difference between this and the last PP is that the holding period is 40 days vs 1 year, and this Reg S paid three times as much as the PP per share. Also the last PP was a 200% dilution, whereas this is a 10% dilution--not terribly significant. As far as Reg S's go, this isn't too bad--even though NO Reg S deals are good from a current investors viewpoint. I would like to point out a few more things: Companies almost ALWAYS take the maximum time allowed before filing. BCMD filed 3 days after the last tranch was received--pretty unusual to let investors know that quickly--they usually let the current investors be blindsided as the typical Reg S with its % discount want time to get their shorts placed. Since November 1996, companies have to file notice of Reg S or D financing within 30 days of closure--prior to then, there was no notification requirement--investors saw their stock price evaporate and never knew what hit them. Note the filing refers to amending the JV. What was the amendment to get Sterling to agree to this? Was there a quid pro quo? Obviously this dilution affects them as they are BCMD's largest shareholder in addition to the JV. Note also the announcement of the last Sterling payment was several weeks late when compared to earlier announcements. I THINK that within 4 months this Reg S COULD be viewed as a benefit to current longterm shareholders--no questions entertained on this thought. Like the rest of you, I have not talked to anyone at BCMD since the SEC filing--but hope to get some answers before Monday. Regards, Gary