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Technology Stocks : INPR - Inprise to Borland (BORL) -- Ignore unavailable to you. Want to Upgrade?

To: Mark Bracey who wrote (766)	7/31/1998 6:08:00 PM
From: lbs	Respond to of 5102

I did. While any dilutive effects suck, it is important to note that there is cash that goes to the balance sheet. I agree that there are way to many shares of this stock. However, the combined cash from the recent land sale, Starfish, the preferred give the company plenty of money to buy back shares. Unfortunately, they cannot buy back more than 10% of the outstanding shares before the visigenic purchase for a year from the closing date. While I cannot believe the price of this stock, if you look at Manu, itwo, ca. jdas, psft, dwrx, vntv, rmdy, ect, it is clear that this group is getting killed. Inprise is not alone. This is on top of the general disaster that small cap stocks have been for the past year. It is important to remember that the Russell 2000 is down over 3% for the year. While many may question the moves that Del has made, this company will win or lose based on their direct sales. Competing with MSFT on IDE's without middleware is a terrible business. The application server provides a chance for INPR to get back to top line growth. In my mind, this stock is an 18 month story from now. If they do make analysts estimates for .50 next year, this should be at least a 12-15$ stock. Not bad. Good luck to all

To: Mark Bracey who wrote (766)	7/31/1998 7:54:00 PM
From: Jerry Whlan	Read Replies (2) \| Respond to of 5102

To the extent that the trading price of Common Stock is lower than $6.94 per share at the time of any conversion of the currently outstanding shares of Series B Preferred Stock, the number of shares of Common Stock issuable upon such conversion will increase. In my experience, this sort of clause is death for a stock price. My most recent experience with this kind of situation is QDEK. Basically, there is now no reason that the owners of the Series B stock can not just short the hell out of the common stock and cover with the future conversion of their preferred stock. The more INPR goes down, the more shares they will get at conversion to cover their shorting. This makes it easy for them to short more shares than they already "own" via conversion, which can cause a lot of dilution. The only thing that could combat this effect is strong earnings, which we don't have. QDEK had losses and experienced massive dilution (on the order of 75% additional shares) due to a similar placement.