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.

Technology Stocks : p-com (pcms) -- Ignore unavailable to you. Want to Upgrade?

To: Night Writer who wrote (867)	12/22/1998 9:28:00 PM
From: Bernard Levy	Read Replies (5) \| Respond to of 1461

To the thread: PCMS has just issued preferred convertible stock in exchange for a $15M investment. I could not access the SEC filing, but if the conversion price is floorless (this is the key fact you need to check), PCMS is doomed (it is in the interest of the convertible holder to drive the stock down in order to have more shares upon conversion). If you want to gain some insight on the effect of floorless convertibles, you should examine CVUS and Geotek. If on the other hand, the conversion price has a floor, say $2, shareholders will be diluted, but the deal does not have catastrophic consequences. Still, I would recommend avoiding this stock. P-COm looks much sicker than I thought. Best regards, Bernard Levy