[Dow Jones] Don't bury MicroStrategy, it's not dead yet.

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From: Adam Rifkin -4K (adam@XeNT.ics.uci.edu)
Date: Wed May 17 2000 - 18:22:37 PDT


Um. "The financing could come in a variety of forms, including a private
placement, sale of equity, or debt." Who in their right mind would give
Michael Saylor access to debt??

We say to MicroStrategy, as Austin Powers said to the Evil Spy Babe,
"Why won't you *die*?"

> MicroStrategy Shares Jump On Rumors of New Financing
> By DONNA FUSCALDO, donna.fuscaldo@dowjones.com
> Dow Jones Newswires, May 17, 2000
>
> NEW YORK -- MicroStrategy Inc. shares surged as much as 15% Wednesday on
> speculation that the company is close to securing much needed additional
> financing, said Frank Sparacino, senior equity research analyst at
> Barrington Research.
>
> In midafternoon trading Wednesday, shares were up $2.6875, or 11%, to
> $26.6875 on the Nasdaq Stock Market. MicroStrategy spokesman Michael
> Quint refused to comment on why the stock is up or on the rumor that the
> company is about to secure additional financing.
>
> On May 3, the software company restated financial results for each
> quarter of 1999 following its announcement in March that it would reduce
> 1998 and 1999 revenue and earnings to comply with new Securities and
> Exchange Commission rules on revenue recognition by software companies.
>
> According to a recent filing, MicroStrategy is looking to build up the
> equity that it could issue in a financing deal. In a preliminary proxy
> statement filed Tuesday with the Securities and Exchange Commission, the
> company said it is seeking shareholder approval to increase the number
> of its authorized Class A common shares to 330 million from 100 million,
> and its authorized Class B common shares to 165 million from 100 million.
>
> The financing could come in a variety of forms, including a private
> placement, sale of equity, or debt, said Mr. Sparacino. The Barrington
> Research analyst added that even though MicroStrategy hasn't announced
> any additional capital, the company has been "pretty open to the analyst
> community in telling us there is a discussion going on right now."
>
> Bert Hochfeld, vice president, technology research, of Josephthal & Co.,
> said he wasn't worried about MicroStrategy's future: "MicroStrategy is
> not going to go out of business, and I wouldn't doubt they will get
> financing." But Mr. Hochfeld thought the stock had yet to bottom out.
> "My view is that MicroStrategy is still not cheap enough," he said.

----
Adam@4K-Associates.Com

.sig quintuple play!

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