To: Bruce Galpeer who wrote (6857 ) 7/19/1998 11:00:00 PM From: James Harold Alton Read Replies (1) | Respond to
Bruce, Thanks for that bit of reassurance regarding whether the group holding the common converted from preferred are holding those shares or selling. I did not know that the latest series of Preferred were placed with the same group as was 2 years ago (series C). It's a bit dated but I was concerned (as you may recall from me bugging you) about the shares from the Series C and had it on "good authority" that those shares would never come to market(would be held till the end) as well and I could find nothing to the contrary at that time with my research. As far as the CC shareholders go, we can verify one large holding from the proxy included with the annual report. On the third page of that proxy, Whyteburg Limited (the largest CC core group) is shown to be holding 1,249,831 shares as of June 11, 1998. Originally that group had 2,710,000 shares, a change of 1,460,169 shares and that is only one of the long list of CC shareholders. In addition, if we go back to the 13D filing by Whyteburg filed on 4/17/98, they had 1,593,356 shares on that date, so we can verify quite a bit of CC selling over the last few months right there. I would like to continue to look for additional information/assurance concerning the preferred shareholder group not being sellers, but I am inclined to agree with you that our "smoking gun" with regard to the selling that started last November is and continues to be with CC. As far as I can tell, this selling (which due to the sheer volume and time frame)is the only reason I believe our stock is so low. My numbers suggest that the bulk of the CC shares that can be sold (including restricted) have already been sold, so bad as it seems I think we will survive that group though it may not feel like it sometimes. (G)
