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EZchip Semiconductor Ltd. Message Board

  • grumrnan05 grumrnan05 Sep 14, 2007 12:12 PM Flag

    23.3 mil fully exch shs + ???? # options

    does anyone here have any idea of a way to find out approximately how many "stock options" are out there that could increase the overall shares outstanding going forward?

    we know that ceo eli stated on the q2 conf call that there would be approximately 23.3 million shares, after the final exchange with remaining vc's (gs & jkb), but also stated "excluding stock options".
    (middle of page 4 on the conf call transcript)...

    this dilutive option inventory number is being avoided imho, like it doesn't matter, or maybe to keep the focus off of it. it is needed for most accurate valuation calculations.

    i believe there are warrants out that are in the money now at $15.50, and there are obviously employee stock options already given to employees too, but exactly how many???

    i want to try and put all longs' heads together, to come up with as precise of a number as we can, so that we all know fully what portion we own here - when all is said and done.

    anyone with links on the warrants or employee stock options info (sec filing maybe) is encouraged to share them here, and will be greatly appreciated for their efforts to contribute.

    tia to all who care enough to take this seriously and to help all longs understand exactly what we own for the long term....

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    • Hello darizonah, your posts were referred to me in response to my posts.

      I am looking for information about the price per share LNOP paid for EZChip share.

      I saw your post mentioned $4 per share, is this the correct amount?


    • darizonah, you never replied to this post:

      longs will find this information very useful in assessing what is really happening with the stock and why, going forward. these are very important issues for investors.

      good luck to all longs. prepare for the retest of our breakout. without revenues or contract news, maybe even lower. just look at it as a great sale to stock up imho.

    • riding, riding, riding, the gumnut trail

    • did you kids ever do your homework and figure out how many shares would be outstanding if all swaps and conversions were done right now????

      you don't want another weekend in detention do you?

      stick to the stock, company, industry or investing.

      otherwise your personal obsessions will be your demise.

      come on, i know you can do it. you care about this board.

    • you are a scumbag, mulehole

    • darizonah,

      why did you just disappear after this post of mine answered all your questions and issues?

      if you simply missed my post, i'd love to see your reply.

      for the good of the board, please stick to the facts supported by links.

      and let the name calling remain on the girls' schoolyard with makin-nuthin.

    • darizonah,

      thanks for your reply. i want to clarify a few points you addressed specifically.....

      1 - i looked at the 6-K as you vaguely suggested, and i found that there are actually more than **14 million** employee stock options outstanding as of june 30th 2007. your figure is only for fully vested options as of 6/30.
      (see pg 9)

      those options (vested or not) will be exchanged at the same ownership ratio of the vc swaps, so the ezchip employees will get their due prorata share of the new company. and i believe there are going to be many more special options given to employees very soon (as a reward for finally making it to the promised land), before the final swap and company name/symbol change happens.

      2 - do you know what the exact exchange ratios were for each previous vc swap?

      i think gs & jkb will get the same share exchange ratio as the other vc owners did. i believe they have just waited longer to "give up control or influence", so lnop stock price would be higher and they could advise management along the way. i trust that ceo eli knows how many shares it will take to complete the transaction as he stated.

      3 - is it your belief that there are no other "stock options" (warrants or any other options that would increase dilution) except for ezchip employee stock options?
      [simple yes or no answer]

      thanks for explaining your thoughts. while you may feel you know exactly what you own, i think you might be leaning towards any answer that seems easier to swallow. i prefer to stick to the factual truth and will remain long but more aware.

    • Mr Grumrman:

      Regarding the options, I thought I answered the question in my post above. There are about 9 million options left to take out. Read the 6K.

      Regarding warrants - They were all taken out by December 31, 2006. Read the 20F page F-16.

      Lastly regarding Eli's statement on the 5 million shares of LNOP to take out the VC's. If the price of LNOP has appreciated from $14.50 ( at June 30th, 2007) to $19.50 today, doeesn't it make sense that it will not take as many shares of LNOP to do the conversion?

      If you think there are snake oil salesmen ...... Then unload your position. I myself have done the research and am very confident on the statements I made above.

      THis is my last comment on this, I think I have laid it out fairly well

    • darizonah,

      while i'm glad someone actually took time to finally focus on the topic of total future outstanding shares, i think your math might be off by quite a bit....

      i politely point out that our ceo eli just stated in the conf call:
      "LanOptics� outstanding share capital at June 30, 2007 totaled 15.8 million shares. Taking into account the 2.5 million new shares proposed to be issued, and assuming the exchange of the two remaining VCs� EZchip shares for an additional 5 million LanOptics shares, LanOptics will have an estimated outstanding share capital of 23.3 million shares, excluding stock options."
      (see pg 4)...

      since the 23.3 million does *not* include ez employee stock options, and the warrant owners can increase the share count too by converting, there are many more millions of stealth shares still waiting in hiding imho.

      we really need to find a way to accurately quantify these outstanding options and warrants if we are going to have any sense of the true valuation of this company we all believe in.

      i fear we'll actually reach 30 million total shares outstanding sometime in mid-2008, which would then put our market cap at $600 million if the current share price stays near $20.

      in summary, i would like to find verifiable sources and links for these two outstanding dilution items:
      1 - ezchip employee stock options still vested and unexercised
      2 - the number of outstanding warrants and lnop share conversion details

      these 2 issues should concern all true long investors. they will be uncovered very soon, whether we do the work here ahead of time or not.

      i am hoping that all true longs unite to uncover the real facts. and be careful of the snake oil salesman aliases that want you to buy more shares at any higher price.

    • No alias here. a true investor whether you believe or not. Good luck with your trading shares.

      $25 next week is likley!

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