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Technology Stocks : NewCom (NWCM) -- Ignore unavailable to you. Want to Upgrade?

To: Cool Hand Luke who wrote (505)	6/19/1998 8:38:00 AM
From: RBattman	Read Replies (1) \| Respond to of 662

Cool Hand: Minor corrections. The 15mm owed by NWCM to Aura consists of intercompany debts to Aura incurred prior to the spinoff. Source was not necessarily related to debenture financing for Aura. When they did the NWCM ipo they turned this intercompany debt into a note with a sept 98 maturity. Aura then did the debenture financing or restructuring and pledged some of it NWCM stock as collateral (if I recall correctly, they also pledged their NWCM note receivable). The NWCM stock is part of the 7.2mm shares owned by Aura. All of its is outstanding but not registered (ie can't be resold). NWCM is obligated to register up to 3mm shares this sept. and the rest next year. Selling this stock would have a dilutive effect because it would put more stock into the daily float. HOwever, if you look at NWCM's financials, they are already calculated based on 8-9mm shares of stock. That is, they calculate their numbers including Aura's NWCM stock. By the way, I don't own NWCM stock. I am an Aura shareholder. If find it interesting that tak 5 and boxster are sharing their negativity on the Yahoo NWCM board as well. Me thinks they protesteth too much.

To: Cool Hand Luke who wrote (505)	6/22/1998 10:55:00 PM
From: David Peterson	Read Replies (1) \| Respond to of 662

Coolhand, this was on Yahoo message 105, It is supposedly quoted from Aura's 10k of October 97. Aura issued $15millionof convertible debentures to a group of investors in a private placement. The debentures , as modified, are secured by a Note from NewCom to Aura in the principal amount of $17million and 1.25 million shares of NewCom. It is becoming apparent that the one million shares short will be covered from the original 1.25 million and thus the float on NWCM will increase about 50%. In all likelihood, it is the Aura noteholder that is shorting NWCM. When the noteholder needs to cover the short in NWCM there will not be any buying in the open market to cover the short. The noteholder delivers shares he received from Aura. Without any buying in the market how can the stock go back up? I'm long on this stock, was aware of the short squeeze and good EPS that came out but was unaware of this info! Gonna research this futher! Dave