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Technology Stocks : WAVX Anyone? -- Ignore unavailable to you. Want to Upgrade?

To: Wahoograd who wrote (1989)	5/7/1998 12:54:00 PM
From: Pure Folder	Respond to of 11417

Wahoograd, I still think Combination, Inc. has a Rule 16b problem this time around because its 2.8M shares (upon conversion) will make it a greater than 10% shareholder of the outstanding common, even if we count all the other future holders of shares mentioned in the April 15th filing (those folks, btw, as officers and directors, may also have 16b issues to address). Rule 16b does not prohibit selling within a six-month window, but it does require that all profits be "disgorged" (returned) to the corporation (viz. to our collective benefit). This could give the company some flexibility in working out a deal for handling the converted shares, perhaps taking them into treasury stock in exchange for cash or other consideration. It also may mean that Combination is hoping/waiting for a secondary that will sufficiently change the ratio and push its percentage ownership back under 10%. My sense, also, is that if this secondary offering is done like an "IPO re-run," it is unlikely they will want to price it under $10 per share. Our situation is unique, though, so this preference may not hold true on our facts. Of course, IPOs have a habit of running up above the initial offering price. . . We'll see. Technicals continue to impress me here--emerging support around $3.00. I'd like to see today's low be above yesterday's low. I doubt we'll see a new high without news, however. Pure Folder