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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Knighty Tin who wrote (31277)	8/19/1998 7:24:00 PM
From: Mark Adams	Respond to of 132070

re SHMN- thanks for your insight. As I understand it, the holders are entitled to 7% net sales royalty- with the minimum return being 10% year. The preferred shareholders participate in the upside if Provir sells well, but not other products subsequently developed. So the common is a better bet for other products in the pipeline, but a longer term shot. I think the preferred is a better play, until other products work their way through the pipeline. Dilution- $20 million * .1 = $2mill -> 666,666 shares/year @ $3share Roughly 6 days volume, 2.8% of outstanding shares. I wouldn't call this a floorless, but if good news fails to come forth, it will depress the common. My comment re this impacting trading over the past weeks was more to the perceived need for additional financing, which until now did not have a solution. I do see yahoo showing 975k shares short, but haven't been traking this so can't say if this shows any sudden increases. Long SHMN with a small stake, BTW.