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.

Strategies & Market Trends : Mr. Pink's Picks: selected event-driven value investments -- Ignore unavailable to you. Want to Upgrade?

To: TraderXx who wrote (9310)	6/2/1999 1:54:00 PM
From: IJReilly	Respond to of 18998

Xx- I'm not sure I would consider SFE's convertible deal as a red flag. They have done this before, for $100 mil in '96; conversion price was around $28 I think. $70mil or so is still outstanding. I don't think they are issuing convertible debt as a desperate move to raise cash; rather the company feels it is a valid way to structure part of their financing. If they were truly hurting for cash, they have several hundred million worth of readily marketable securities they could sell some of. Having said that, SFE may still be a great short, as it has run up incredibly on the "next CMGI" hype. If the inuts tumble more, it will be sure to follow. IJ