Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Q. who wrote (1281)	6/25/1998 7:10:00 PM
From: Carl Yee	Respond to of 2506

After all the hand-work to cover my short at 2 1/2, I don't begrudge anyone the rest of the profit to zero.This does look like a real goose-egg in the end though. Now what is the next candidate, this delisting "E" stock strategy certainly has worked well, huh?

To: Q. who wrote (1281)	6/25/1998 8:52:00 PM
From: RumbleFish	Read Replies (1) \| Respond to of 2506

John, You were asking about General Magic? General Magic Secures $35M Financing Commitments Dow Jones Newswires SUNNYVALE, Calif. -- General Magic Inc. (GMGC) received commitments for $35 million in equity investments and bank financing. In a press release Thursday, General Magic said it received commitments for $32 million in equity investments from investment funds managed by Palladin Group LP, Rose Glen Capital Management LP and Promethian Investments Group LLC. General Magic agreed to sell the investors $30 million of Series C preferred stock, which can be converted into common stock at 135% of the market price of its stock at the time of closing, or at a price based on the market price of its stock before conversion, whichever is less. The Series C preferred stock is not convertible until after a five-month period following the date of issuance with limited exceptions, the company said. General Magic said the investors also agreed to exercise their right to buy an additional $2 million of Series B preferred stock under an agreement reached in March. The company will further issue to the investors 150,000 three-year warrants and 160,000 five-year warrants to buy additional shares at a premium to the common stock price as of the date of issue. General Magic will use the proceeds to help fund the "anticipated growth" of its Portico network service. The company expects Portico to be available July 30. The company said the remaining $3 million funding will come from Silicon Valley Bank's Software Capital Practice Group to finance additional equipment requirements. General Magic offers integrated voice and data applications. ---------------------------------------------------------------------------- This one is of no practical value as a short since it's trading under a dollar, though it was over 5 a year ago. Interesting story, anyway. Incomnet Inc. Pfd Holders Rescind Conversion To Cmn Dow Jones Newswires WOODLAND HILLS, Calif. -- Incomnet Inc. (ICNT) said 13 shareholders rescinded their conversions of Series A and Series B convertible preferred stock into Incomnet common stock because the company was unable to deliver the number of common shares required under the agreement. As reported June 15, Incomnet said it would ask shareholders to approve a one-for-six reverse stock split in order to satisfy obligations resulting from a conversion of preferred shares. The company said shareholders converted 2,447.9 preferred shares into 14.6 million common shares on June 10 and 11. In a press release Thursday, the company said only 434.2 preferred shares were converted into 3,100,900 common shares. The remaining preferred stock wasn't converted because the company reached its limit of 20 million authorized common shares, leaving a total of 11,519,310 common shares. Incomnet said it still owes 2,132,324 common shares to four shareholders who haven't rescinded their preferred stock conversion. The company will hold a special meeting for shareholders to vote on a 1-for-6 reverse split. If approved, the company will have 3,688,721 common shares outstanding.

To: Q. who wrote (1281)	6/25/1998 9:24:00 PM
From: drakes353	Respond to of 2506

John: I wonder if they will be able to ever get the stock price up high enough to get the stock relisted? Wouldn't be surprised if the did another reverse split. If they do that will be their third. If you think the stock was illiquid this go 'round imagine what it will be like after the next 1 for 6 or 1 for 10 jobbie. What is this goodwill they will write off? I don't see any such item on the last 10Q balance sheet. With these service companies it shows up as "management contracts" or some such thing (someone correct me if I'm wrong.) I'll be shocked if they don't also write down some accounts receivable as well. I'm under the impression that around $5 million of the AR that Equimed sold to Colkitt who sold it to John Alden Financial remains uncollected but is not yet written down. Who was asking about PRST? Was it Carl? I was short PRST for around six week a short while ago. Made a huge 6.8% profit in that time. The longs in that stock are a stubborn bunch. Cabot has it at a "strong" or "aggressive" hold (how idiotic is that?) Relatively active SI thread which is worth a look. Probably take a look at it ahead of their next earnings report. Their chair has said this is a transition year and that it will be "challenging" for the company and its shareholders. Seems I remember Kim Edwards using the "C" word many, many points ago. It's on my list to re-short at some point before year end. drakes353