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Strategies & Market Trends : Shorting stocks: Broken stocks - Analysis -- Ignore unavailable to you. Want to Upgrade?

To: lindend who wrote (1129)	6/8/1998 6:30:00 PM
From: Q.	Read Replies (2) \| Respond to of 2506

Linden, IVIP has changed mgmt., and its new managers have some good credentials. The CEO: ROBERT N. GOODMAN. Mr. Goodman joined the Company in November 1997 as president, chief executive officer and a director. From April 1997 to November 1997, he was the director of business development for MSNBC Interactive News, LLC. From December 1995 to April 1997, Mr. Goodman was an independent consultant working for Microsoft Corporation. Mr. Goodman was in the process of moving from San Francisco, CA to Seattle, WA during October and November 1995. From November 1993 to October 1995, he was Assistant General Counsel for 27 The 3DO Company. From April 1993 to November 1993, Mr. Goodman was General Counsel for Asymetrix Corporation The people from Netscape and NFL are board members, not executives. The CFO has some big-six auditing experience, so he should know what is going on. Basically, the financial situation was awful, and then they got the $5M private placement that will get them going. I'm not sure if this is all that unusual for a development stage company. The executives might be fully aware of what the discounted convert can do to their stock -- I noticed that the CEO and CFO own exactly zero shares of stock. Some of the board members have an equity interest, some don't. Although I shorted a tiny amount, I don't particularly advocate that anyone else short this stock. The discounted convert does not represent a huge dilution, and there are risks. It is internet-related, so there is always a possibility of a soaring stock price. They say that they plan to introduce their redesigned web site in 'early summer', so there might be some hype over that. Maybe the new site will be successful (the present site underwhelms me). If somebody wants to short the stock, they might want to note the discount schedule shown below, so they can decide when to do it: The Preferred Stock is convertible into Common Stock as follows: (i) during the period from April 10 through July 9, 1998, the Preferred Stock, together with accrued and unpaid dividends, may be converted into Common Stock at a conversion price equal to $9.73, (ii) during the period from July 10, 1998 through October 7, 1998, the Preferred Stock, together with accrued and unpaid dividends, may be converted into Common Stock at a conversion price equal to an average of the closing bid prices of the Common Stock on selected dates prior to conversion or $9.73, whichever is lower, and (iii) during the period from October 8, 1998 through January 5, 1999, the Preferred Stock, together with accrued and unpaid dividends, may be converted into Common Stock at a conversion price equal to a 5% discount to the average of the closing bid prices of the Common Stock computed from selected dates prior to the conversion or $9.73, whichever is lower. Thereafter, each Preferred Share, together with accrued and unpaid dividends, is convertible at a price per share of Common Stock at a discount of 10% from the average of the closing bid prices of the Common Stock computed from selected dates prior to the conversion or $9.73, whichever is lower.