TCTV, funny you should say increase short position. I FAXED THIS POST TO THE STREET.COM tHEY WOULD NOT ANSWER THE FUGLY QUESTION ON THE YHOO BOARD.
To: Auric Goldfinger (382 )
From: RockiReid Thursday, Dec 17 1998 8:39PM ET
Reply # of 389
Goldfinger, this is going to be the easiest money I've earned since shorting CFON. I posted the below on Yahoo, no takers, wonder what you think of it, if I made any mistakes, please correct. thanks
in 10Q, as of 9/30/98 we've got
4.093 million shares outstanding,
4.732 for Mels Debenture
and on Page 14 we find that hey, TCTV has reserved a cool 9,469,500 shares of common stock for future issuance pursuant to stock warrant, stock option and convertible debt agreements.
Since Mel's debenture is being converted as part of an obligation due to a private agreement I am assuming his 4,732,000 shares ARE NOT part of the 9,469,500 reserved. So we're looking at close to TWENTY MILLION SHARES being outstanding VERY, VERY soon.
OUCH !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
what's the Price to Sales ratio on this one boys and girls !!!!!! Pretty high and pretty fugly looking too.
and what will TCTV and all you longs get for this SUPER MASSIVE DILUTION that's coming your way. Let's see,,,,,,,,,,,,
1) for Mels 4,732,000 shares you get a reduction in debt of $2,366,000. at $0.50 per share not a badddddd deal.
2) Mel also happens to pick up another 180,000 shares for FREE since the above transaction was obviously a BIG PAIN IN THE ASS for him.
hehehe
3) And TCTV gets $500,000 simoles for giving Mel warrants on 500,00 shares. ($1 per share)
4) And TCTV gets $2,500,000 for giving Mel warrants on ANOTHER 500,00 shares ($5 per share)
looks like Christmas came early to Mel's house.
did any of you longs get such SWEET and TASTY deals like this ?_?_?_?_?_?_?_?_?_?_?
5) some private placement investors can pick up 247,000 shares, for converting $595,000 debt ($2 a pop)
6) we've got some warrants out there 1,610,000 at a total of $6.00 apiece
7) another 625,000 warrants at 5.75 apiece
8) ANOTHER 100,00 warrants at $7.56 apiece
140,000 warrants @ $6.125
200,000 warrants @ $2.50
100,000 warrants @ $2.50
AND the October dilution ($500,000 convertible 12% debenture, ouch) has not even been accounted for yet, so we're looking at even more dilution.
Just one question to the longs
Which group do you belong too????
A) The smart investors getting those SWEET SWEET deals outlined above
or
B) the RETAIL CHUMPS ????????
cheers
rr
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