Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Shorting stocks: High fliers -- Ignore unavailable to you. Want to Upgrade?

To: Mark Marcellus who wrote (573)	11/19/1998 4:04:00 PM
From: Q.	Read Replies (1) \| Respond to of 709

re. BFLY, only 2.7 M shares out, market cap of about $30 M, this is a littly bitty thing. liquidity is scary: they burned about $2.2 M in last 9 mos., only about $1.7 M on hand now. I don't see how they can spend the money on advertising that they need to spend in order to get customers to their site. Here's what their 10Q said: The Company anticipates, based on current plans and assumptions relating to its operations, that the proceeds of the IPO, together with existing resources and cash generated from operations, should be sufficient to satisfy the Company's contemplated cash requirements for only approximately seven months after the date of this filing. Moreover, there can be no assurance that the Company will not require additional financing during such 7-month period. The Company's current borrowing arrangements substantially limit the Company's flexibility in obtaining additional financing. Proceeds from the exercise of the Company's outstanding warrants and the purchase option held by the underwriter of the IPO could be a source of capital, although, there can be no assurance of any such exercise. The Company intends to seek additional debt and/or equity financing through a public offering, private placement or otherwise. There can be no assurance that any additional financing or other sources of capital will be available to the Company upon acceptable terms, if at all. The inability to obtain additional financing, when needed, would have a material adverse effect on the Company's business, financial condition and operating results and raise substantial doubt about the Company's ability to continue as a going concern. ********************** looks like the 1.7 M warrants have a $5 strike price, so if they can price, maybe they can get a few bucks that way.