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Ask Jeeves, Inc. (ASKJ) Message Board

  • oldpalos oldpalos May 30, 2003 6:43 AM Flag

    Dilution--Valuation Less Than $10

    With impact of this "sweetheart Deal" and the fact the stock has rallied from $ 8.35 from May 7th to the high of 14.27 on Thursday---Pump and Dump the shareholders are in extreme risk of significant dilution-the premium paid on conversion-almost 30% should dilute the value of the stock to around $ 10 a share-----it may pop on Friday .15 to .20 cents the trend is definitely down

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    • going long or short on any stock entails risk.

      shorts and longs have both made enormous amounts of money on this volatile stock.

      don't fool yourself that this is a one way ride. pay attention to history.

      the idea that a second tier search company which derives alot of it's revenue from another search company is some kind of solid investment is ridiculous.

      The butler gets people fired up.....great trading vehicle....terrible investment.

      jbd.

    • The only thing you are right about is the SHORT COVERING.

      See what has happened each time we have a meteoric rise. The existing shorts panic and new morons short higher.

      There have to be easier shorts. Check out the China internet plays if you can get shares. SINA, SOHU and NTES.

      Shorting ASKJ can be hazardous to your portfolio. You have to pick it perfectly to make a point. Longs have 4 baggers or more just by random buys.

    • putanah....

      1. it's dilutive

      2. the money isn't needed

      3. hedge funds will own the convert and short the common.....supply of shares rises just as demand from momentum players and traders declines

      if ASKJs shares were more conservatively valued and there was some desperate need for $100 million, it would be a good thing. as it stands its dilutive and permits the management team to relax while they continue to take their own ridiculously generous options (dilutive to shareholders putting their own hard earned money on the line) and take them to the great American ATM for insiders........the stock market.

      Anyway the convertible isn't nearly as important as the lofty valuation fed by the momentum players.

      Momentum players will exit. The price will fall until it reaches a point where serious investors think it's worthwhile.....however it will take a while as there will be alot of short covering on the way down.

      cheers. jbd.

    • There is no potential dilution until the stock rises above $16.90. You people really have to analyze things more carefully before you talk. Think before you speak.