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To: DARPA who wrote (1203)	12/18/1998 8:26:00 AM
From: Walter Morton	Read Replies (3) \| Respond to of 8858

DARPA, I just took a look at the SEC filings and must say it looks pretty good for a penny stock. I noticed that SNMM has 11 million shares in float (33% of total shares). 5.75 million of those shares are for options for the directors and employees. 3 million of those share can be exercised at $.74 before 2008. My point is that shares outstanding could potentially be increased by close to 33% sometime in the future (exactly when, we don't know). An increase in shares outstanding reduces earnings per share and usually negatively affects stock price when a company is not growing at a pace greater than the dilution from issuing more shares. This may not be a problem for SNMM. However, I might get a little nervous if they asked to increase the number of authorized shares. I also noticed that SNMM's directors and officers only own 5% of the shares. That is a very low number for a company that is expected to have such a great future. However, once they exercise their options they may have as much as 16% of the shares. That is still a low number. Personally, I like a number around 30%. Either the directors and officers don't make enough money to invest in SNMM or they don't think the current price is a bargain. So, although I like SNMM, it makes me wonder. If the people on the inside of the company don't think SNMM is selling at a bargain, why should I buy SNMM at these prices instead of waiting for it to fall to... let say $.74? Hmmmm...