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Technology Stocks : ocom breakthrough technology -- Ignore unavailable to you. Want to Upgrade?

To: Q. who wrote (572)	7/22/1998 8:48:00 AM
From: mod	Read Replies (1) \| Respond to of 994

<<They will just have to keep going back for more discounted convertibles, over and over. If they succeed in ramping their product, they will need cash. If they fail they will need cash too. So from my point of view, it doesn't matter -- they will have to do the convertibles.>> I think this statement is at least half wrong. If OCOM can start delivering working systems and getting paid, they can finance their receivables easily, on much better terms then a convertible, as they will only have to pay interest. They are also likely to be able to get a line of credit from a bank, to be used to ramp up production if necessary. The key is starting to get paid, that will open the door to many other financing options. If they fail this time, I suspect they will try to sell the company to a larger player (or even another video company, if any are solvent). I do agree that they will not be able to do a secondary offering for a while, most likely until they can show profitability in a quarter. Dennis