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Non-Tech : SFP -- Salton Inc. -- Ignore unavailable to you. Want to Upgrade?

To: LzzrdKing who wrote (34)6/5/1999 11:19:00 AM
From: James Wright  Respond to of 173
 
The Yahoo board has some good analysis on a secondary.

Essentially, a secondary should be accretive because it will allow SFP to pay off its debt, thus saving interest expenses and add to profits. The calculations are somewhat complex, but essentially SFP will add earnings of $0.915/share after tax if it pays off existing debt from the proceeds of a secondary.

The trick will be for SFP to not get too greedy with the secondary and float more stock than is necessary to improve the balance sheet. However, with the current low float and thus low volume, increasing the amount of available stock should help make SFP more liquid and thus attract even more institutional ownership. A stock split also would help.

-- Jim



To: LzzrdKing who wrote (34)6/8/1999 10:27:00 AM
From: Bruce A. Brotnov  Respond to of 173
 
Another event could be a split since they have such a nice round of earnings going for them. I agree we will probably see pressure to keep it under $50, either by a secondary or a split. Time will tell. Yes, at $34 I think I would by the 1/2 back that I sold at $38.

Bruce


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