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Technology Stocks : p-com (pcms) -- Ignore unavailable to you. Want to Upgrade?

To: Fhirdia who wrote (733)	7/28/1998 11:36:00 PM
From: Doug Gallian	Respond to of 1461

Is anyone else besides me using these prices to average down? It'll take a lot more shares of buying in the $6 range for me to break even any time soon! 8( Doug

To: Fhirdia who wrote (733)	7/29/1998 6:22:00 AM
From: CharlieFox	Read Replies (1) \| Respond to of 1461

Fhirdia-- I spent several hours yesterday reading all the PCMS filings available on freeedgar.com. I didn't like what I read there, so I sold my 400 shares at that I had bought last year at around 20. Ouch! But getting 6 1/8 back is better than getting nothing back, no? Yes, apparently Paine Webber bought $7 million of the "Convertible Notes" last November, then converted them at a 30% loss in May after the first(?) interest payment was made. So they must have realized back then that there was a strong risk that these notes were going to become worthless if PCMS was unable to make the next interest payment in October. Originally, these notes were a "private placement", and could not be sold in the US (as I understand it) because they didn't meet SEC disclosure requirements. (One wonders how Paine Webber came into possession of them.) Then PCMS came back later and jumped through the necessary hoops so the notes could be traded in the US. This was probably because the holders of the notes found that they couldn't find buyers for them, I suppose, and pressed PCMS to file the SEC papers (I'm speculating, here). A number of other foreign investment companies converted these notes at about the same time last May, including one in the Cayman Islands called "Navesink". The word was out there on the street last May that there was trouble in River City, but us poor saps didn't see it. I'm definitely going to pay more attention to SEC filings on the stocks I own in the future...