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.

Biotech / Medical : Pharmos (PARS) -- Ignore unavailable to you. Want to Upgrade?

To: Dr. John M. de Castro who wrote (481)	2/7/1999 10:48:00 PM
From: LLCF	Respond to of 1386

<Their sole interest is to make as much as they can as quick as they can.> I agree that this appears to be this type of deal... if it's as bad as it looks at first glance, the company was foolish to get in bed with these guys. < They cash out as soon as possible and use the money for the next deal.> But with warrants if you exercise them you're leaving money on the table... you only get intrinsic value (stock price-exercise price). They are worth much more. This is not to say that these guys are holding a straight long position in these warrants... they are undoubtedly short the stock against them, but I assume they have been all along since nothing states that they couldn't "hedge" those warrants untill this year... just couldn't exercise them. Thats probably why this stock trades so liquidly... these guys have a "straddle" on by being long call warrant short the stock and are trading it back and forth. If you read the filing provided on that preferred it specifically states in the warrant section that the buyers of the securities would be free to trade the stock without restraint... it says this right in the filing! A bit scary if this is indeed a "bottomless" preferred. You can expect that at the right time they are going to want the stock nice and low so they can take as big an equity stake as possible at the correct time. I'm still trying to get the exercise terms from the company so I don't have to wade through that whole statement... let you know what I dig up:) DAK