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Microcap & Penny Stocks : GLBM expected to earn $.25 next year - A buy at $1.25 -- Ignore unavailable to you. Want to Upgrade?

To: Jonathan M. Traxler who wrote (684)	8/20/1998 12:09:00 PM
From: Proton	Respond to of 938

Re: Buy Opportunity? Just went below 1.5 I'm thinking of picking up a few more thousand shares.... Sure, but what and from whom? Do you buy shares on the open market, or units from the company directly? Wasn't it nice of the company to eliminate demand for the common stock on the open market? :-( Especially since they didn't tell existing shareholders until nearly one month after the offering began (at least not all the shareholders). :-O I hate to speak too strongly, so suffice to say I am examining my options. Right now, this company looks like more of the same from the Bulletin Board. P.

To: Jonathan M. Traxler who wrote (684)	8/20/1998 2:06:00 PM
From: Neurogenesis	Respond to of 938

I would if I had any money.

To: Jonathan M. Traxler who wrote (684)	8/21/1998 1:11:00 AM
From: Proton	Read Replies (1) \| Respond to of 938

Re: Trying to Price the Pig IMPORTANT: My calculations are replete with assumptions. In no way are they intended to be used for the purpose of making an investment decision. I have been trying to estimate the value of the units Maintech is selling. The units' increase provision makes them virtually impossible to price (as Maintech management is learning, one can hope). That increase provision -- insofar as I can understand it -- is valuable. Let's leave the "December Spiff" off the table for now. As a further assumption: let's assume that the warrants are equivalent to an American-style call option with an expiration date of August 20, 2000. I then went to the CBOE web site, where I calculated the theoretical values of the warrants, given several different stock prices. Without the details, here is my conclusion: as a unit of 1.0000 share of GLBM common and 0.58674 warrants (strike price 2.60, expiry 8/20/2000) selling for 2.20, the stock value of the unit would have been approximately $1.90. That is to say, had Maintech management not had that silly "December Spiff" provision, equity dilution would have been quite modest. Adding the spiff to the value of the common and warrant parts of the unit lowers the value of the common. How far? I would practically have to reinvent options pricing theory to tell you (anyone want to fund a grant?). My initial guess is that we're quite close here in the 1.375-1.500 range. When the common was in the 1.750-2.125 range, the units were a screaming buy. Delicacy (and a healthy respect for defamation lawyers) prevents me from saying what I think of McCaffrey, et al right now. P.