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Strategies & Market Trends : Shorting stocks: Broken stocks - Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Daniel Chisholm who wrote (2360)	5/30/1999 6:59:00 AM
From: Q.	Read Replies (1) \| Respond to of 2506

re. SACM, this looks safe to remain short all the way to zero. the delisting puts them in default on their toxic debt. Here's an excerpt from 8-k: As previously disclosed in the Company's press releases and filings with SEC, the delisting of the Company's Common Stock from the NASDAQ SmallCap Market, is an event of default under the Company's outstanding $2,500,000 Principal Amount 5% Convertible Debenture (the "Debenture"). In the event that the trading of the Company's shares is not reinstated by June 3, 1999, the holder of the Debenture has the right to accelerate the Company's obligation to repay the entire outstanding principal amount (which is approximately $1,500,000) and all accrued interest such that it becomes immediately due and payable. In the event that the holder of the Debenture makes such a demand, the applicable interest rate will be increased from 5% to 9%. The Company does not have the financial resources to repay such indebtedness.