Post by
finishitoff on Aug 02, 2000 3:38pm
50 cent financing? Doesn't look like it.
It looks like too much paper coming in the market for the 50 cent deal to be done. I would suggest that you will see a 30 to 35 cent financing being announced in the next few weeks. With all that staff and the rest I would expect the company will have to cut a deal with committed money at a lower price. I would find it highly unlikely that a person committing to any significant amount would demand a lower price. I'd definitely be interested in stock this cheap especially with a warrant. Only negative is that present shareholders would get diluted significantly. It would also look like any options presently set would be set to a lower price as I would assume the company would need as much money as it can get as it seems like it is going into a period of higher spending. Too bad no significant sales haven't been closed and the revenue being booked. Then the company wouldn't have to finance at such desparately low prices. Hopefully, this is the last not so perfect move for the company. As most would like to see the company trading 75 to 1.00 not in the thirty's and maybe headed lower. However, done a some due diligence on the new guys in the company, should be pretty good longer term. But they may not help share price significantly as I think the company will need to raise more than 300k in the near future. So shareholders may be asked to bite the bullet with cheaper dilutive financings.. I really hope this is not the case and the firm secures an effective I.R. firm that can take the stock back into the sixty to seventy cent range. If not well you know who to blame, there has been enough opportunity to rectify the problem. Here's jhoping to a higher price.
Comment by
buyguy on Aug 03, 2000 9:43am
You mentioned options? I thought these guys had options set at the JCP level of $0.15 how much lower could they go? Wouldn't the stock price have to go much lower to set the options lower? This doesn't make sense to me?