To: Wayne Rumball who wrote (31617 ) 12/4/1998 8:46:00 PM From: Rande Is Read Replies (1) | Respond to of 34592
Wayne, Thanks for the input. Yes, as I have said the dilution is the one thing that is a concern. The question is, what are the projected revenues and how would the dilution factor in to set up an earnings model? If we are talking about present revenues divided by newer outstanding...forget about it. But with these huge deals comes huge revenues. Look what Compaq Presarios did to AURL's bottom line. Now multiply that by the new deals signed, plus ongoing Compaq, Dell, etc. deals. THEN divide by the diluted figure and tell me what you get. And it may be that it is not worth the ride. But there is momentum in the news with AURL which may lead to some serious revenues. I am following this momentum by selecting this stock. If A3D becomes the new industry standard in PC audio [which it appears to be doing], then not only do we work out the current debt, but we move into positive earnings [slight as they may be with this new dilution]. Biggest downside is perhaps the holders of convertible preferred that wish the maximum number of shares for conversion. They are not legally allowed to short to deflate price for personal benefit. However, I would guess there are ways of keeping a lid on upward movement or even driving it down [MM bribery?] until they convert. So far, this stock can't seem to break .50 on the downside, though I am not sure what the support consists of. Often these pennies will become sub-pennies before conversion takes place. This one didn't. But then it might. While we have the weekend, I would appreciate all comments, calculations, scenarios and other helpful input so we may make the best decision for all. Everyone admits the deals are impressive. But if this new offering is approved, it could cause a tug-of-war between those wishing price to go up with AURL succeeding and those who OWN the most of AURL that wish price to go DOWN, so that they can own a larger piece of the promising pie. Anybody out there good with numbers? Rande Is