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Strategies & Market Trends : Joe Copia's daytrades/investments and thoughts -- Ignore unavailable to you. Want to Upgrade?

To: The Osprey who wrote (13004)	3/5/1999 10:54:00 PM
From: Pat MacD	Read Replies (3) \| Respond to of 25711

Thanks for your response and due diligence on this project. Your points are well taken. I agree that a shell of this nature has value. The unknown factors are the risks(as with most BB stocks) You are betting on management's ability to negotiate the right deal. (I know shareholders will be required to vote,but in most of these cases the outcome is determined by management.) I am from Canada and this scenario is similar to a financing mechanism in Alberta known as a JCP (Blind pool) In which financing is raised for a shell without knowing the major acquisition to be acquired) I won't bore you with all the technicals but in most cases these are priced between .10 to .15(seed capital) and the initial public financing at .20 to .30 Just one more point that you might want to keep in the back of your mind. The line of credit was secured by the company as well as a personal guarantee(as per the 10Q)In my experience when a corporate line is secured by a personal guarantee the bank is placing more value on the personal than the general security agreement of the corporation.(In Canada anyway) Just my thoughts Good Luck