To: Jgilbert who wrote (80 ) 5/21/1998 4:19:00 PM From: robert m evans Read Replies (2) | Respond to
According to the company, dtec shares will be converted into Phox shares at a multiplication rate of .146... They plan on converting the shares, soon. They must convert all shares by feb. 99. If you look at the Total outstanding shares in the Q report you will see approx. 6.5 mil. That number includes all of DTEC shares (converted)and Phox shares. The float Of PHOZ shares is around 2.5 mil. and total around 4 mil. Accordingly once the dtec shares are converted it will only add approximately 2.5 million shares over all. Last quarter they earned approx .05 a share based on a lower amount of shares, I didn't ask where the extra shares originated. They might have converted some of the dtec stock already, or the may have not calculated dtec shares into the fourth quarter's numbers. The conversion rate will not change so today I picked up some PHOX at a bargain(compared to dtec).65 vs .70 earlier. There was a large block traded but technically there are 7x2.5 mil outstanding, so it drove the bid and ask further apart, but right now to buy at the ask, dtec is the bargain .70 vs .78. As in anything the company's performance is what will ultimately drive the price. Right now, I haven't seen another company with the upcoming performance of this one, at these prices and shares outstanding. I asked if Phox would go onto the National small cap market when the price exceedes $1. Apparently the idea is being considered but no definite decision has emerged. More will probably be revealed at the annual meeting. As for Phox Diffused infrared tech., it is licensed to Moldat and royalties are being recieved, but Phox has no current or future intentions on spending anymore resources on that portion of it's product line. They intend (I think wisely so)to focus entirely on the DTC line, which has proven and promises to be far more profitable. They have decided to go with the prevailing technology used by adaptec, it can only help both in the long haul,IMO.
