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Technology Stocks : IFMX - Investment Discussion -- Ignore unavailable to you. Want to Upgrade?

To: Robert Graham who wrote (10819)	5/18/1998 10:30:00 AM
From: wpckr	Respond to of 14631

Really "fun stuff". I have to confess that I am the beneficiary in this dialogue. I am a novice in "the art" of the market and I find this thread and your posts really informative and helpful. Please keep them coming. Thank you.

To: Robert Graham who wrote (10819)	5/18/1998 10:59:00 AM
From: Robert Graham	Read Replies (1) \| Respond to of 14631

I have looked over some more of the details of the convertible preferred and their conversion into common stock. It looks like from what I can tell that the conversion price of both Class A-1 and B is $4 per share. 12.7M shares of common were converted to from 220,000 shares of Class A-1 back in February of this year, with the exersize of warrants for an additional 60,000 shares of Class A-1 preferred. There are warrants still available to be exersized for an additionally 80,000 shares of Class A-1 preferred. Depending on the selling price of the common at time of conversion of the preferred shares, this all can have a total combined dilution of approximately 20M shares. I think this is dependant on a price of the common being at or below approximately 6. There will be a conversion possibly as soon as this Monday of 50,000 shares of Class B preferred for approximately 12.5M shares of common with warrants for an additional 20% more of common shares. So in summation, there will be an increase of approximately 27.7M shares with a possible total of 35M shares which represents 23% of the shares outstanding, and a higher percentage of the float. Based at lets say 2.5M daily volume turnover, we are talking about a total of over 10 day supply of shares and a supply of over 14 days of shares possible within the next couple month. This is significant, particularly considering an apparent cost of $4 to the preferred stock holder. Anyone who is knowledgeable of the "ins and outs" of warrants and convertible preferred and their private placement is welcome to comment. By the way, I wrote June 5 CALLs for 2 7/8. I waited for a move up of the stock price from the effects of expiration which did not materialize. Oh well! I could of capture 3 1/8 for those same CALLs. Live and learn. What is interesting is 8 is not turning out to be a resistance as I had expected which is bad news. The market participants who follow this stock are not willing to step up and purchase the stock when it reaches 8 as they would normally do. Also the preferred shareholder is apparently selling the common right at the start of the day. An intraday support has been found at 7 5/8. Bob Graham