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Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?

To: BANCHEE who wrote (7055)	5/17/1999 7:03:00 PM
From: Rande Is	Read Replies (2) \| Respond to of 57584

Yes, Banchee. . .on BDE. . . The May 99 report made official the equity investment the company reported last week by the media moguls. . . .the bad thing about Wall Street is that those with the deepest pockets get the best deals. . . 252,000 shares were issued to two investors at $2.1875 per share. The company could have sold far more shares to our thread than they did to these investors. . .at that price. . . who wouldn't have bought at 2.18? But that is the way that companys work, unfortunately. And the PR that the placement created helped get the company into the mouths of far more investors. . .so it keeps on parlaying. Now that April 27, 99 convertible. . .appeared to be just a common short-term loan. Sort of like when your "neighbor" offers you five-thousand bucks for that used car you barely drive anymore and keeps that offer valid as long as it takes. . .even though he knows full well that you advertised it in the local paper for 10 thousand and book value shows it at 15 thousand. But the three respondants from the ad pass. . .and you missed the deadline on the next week's issue. . .and suddenly something comes up where you need cash RIGHT NOW. . .so you sell it to your neighbor [thinking you are doing the neighborly thing, when in fact you are being manipulated] for 5,000 because you need the cash now. "And besides, neighbor, you can come and borrow it any time you wish. . .so it is just like you never sold it to me at all." . . . . .right. . like you will ever borrow it. Well that pretty much explains why these companies do such deals. Quick money now. . .and no harm until down the road a year. . .but by then, they know that the company will be in great financial shape, so it won't hurt. . .Fortunately, this doesn't look as bad as most. . .it is the ones where millions of shares are offered for pennies on the dollar upon conversion. Basically the debenture deal appears to be one where the company coughs up 1.5 mil worth of stock in a year for 1 mil worth of cash now. It isn't a floorless or a high volume debenture, which could come back and hurt the company. Basically, it just looks like a short-term loan against the company stock. NOTE + + + I am not an investment lawyer or accountant or banker or broker. . .so don't use my opinion as a basis for whether to buy or sell any stock. Please seek professional advice for such issues and do your own due diligence before investing in any security. Rande Is