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To: Rob S. who wrote (37346)	1/28/1999 10:14:00 AM
From: Peter Bernhardt	Respond to of 164684

... this amounts to a mortgaging of profits well into the future. What profits? <8)

To: Rob S. who wrote (37346)	1/28/1999 10:26:00 AM
From: Yojimbo	Read Replies (1) \| Respond to of 164684

Keep your "lucky guesses" coming! Debt or secondary - this amounts to a mortgaging of profits well into the future. a follow-on equity offering would have been a plus for shareholders long-term: adds liquidity, less dilutive at current levels and it's pari-passu. couldn't do it though b/c if the stock tanks they'll get thier b&ts sued off. a cvt, on the other hand, pleases the sr debt holders tremendously since (a) it's junior to their claims and (b) it pumps much-needed cash into the company. heed my words: shareholders should be worried.* this adds more leverage to a company that cannot support any leverage! it puts the equity $1bln under water! this is a company that won't have any operating profit for YEARS (if ever)! at best, the converts get converted and shareholders get slammed on dilution. bozos was right about one thing: his stock should constitute at most only a small part of your portfolio !!!! y