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Strategies & Market Trends : Floorless Preferred Stock/Debenture -- Ignore unavailable to you. Want to Upgrade?

To: Mama Bear who wrote (102)	10/9/1998 1:26:00 PM
From: George Dawson	Read Replies (1) \| Respond to of 1438

Barbara, It is even more interesting when you consider that: 1. The company has secured financing for additional year outside of the convertible preferred shares, by an additional deal from Boeing and a licensing deal with Inrange. This type of deal before the large short position would have resulted in a significant upswing in the stock price. As an example, two years ago the company signed a deal with Sequent for about $20M (that was later cancelled) and the stock price shot up to $41/share. 2. The deal removes any question mark about the technology and its competitiveness. 3. The company is focused on signing large deals, by focusing their engineering and sales on OEMs. To me it is clear that there are currently mechanisms in place to counter these very positive factors that should have moved the stock price to back over $5. It traded in the $5 - 12 range with significantly less cash flow. George D.