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Technology Stocks : CPTL -- Ignore unavailable to you. Want to Upgrade?

To: Peter V who wrote (171)	8/5/1998 4:42:00 PM
From: Pluvia	Read Replies (1) \| Respond to of 199

Change STRONG SELL Rec. to WATCH Good to see the company got some significant financing - and admittedly on much better terms than I though possible given their situation. The terms of the conv. pref. allow the conversion price to be lowered to match the lowest price of any other subsequent financing/stock offering. With the $75mm financing announced today they have offered 7.5% of the outstanding stock at 6 3/4. This may mean the conv. pref. are now able to convert at 6 3/4. If so, I suspect there will be shorting above 6 3/4 and promotion to keep the stock above 6 3/4. Given this scenario, and the new financing, IMO the downside risk on this stock just became significantly less risky - and less probable. The upside without significant growth will IMO also be limited. For these reasons I have pulled my STRONG SELL Rec. and put the company on WATCH. I covered my shorts today at 7 1/16 - a loss of .0325 plus commish. Best of luck to the longs, I'll be lurking here to see how the company spends their money. Cheers Steve