TheDirectory.com Inc (SEEK)

[awesome1_in_cc]

Skippy,

Basically you have people who have invested money in the company and have the right to turn their cash investment into shares (which I am sure were at a set price or at a premium to the current)at anytime they want.

The news is basically stated that they have agreed not to covert until atleast May now.

It is good news really as it keeps them from converting and then turning around and dumping them all on the market. This would most likely cause a sell off and screams of dilution.

I think Scott and the rest of the company are doing a great job of building the buisness and also trying to improve their balance sheet. IMHO, their biggest hurdle on this front is the share count and it seems they are trying to address that. Once they get their share count more under control there is nothing stopping them from moving to higher exchanges and becoming a major player.

The transition from a cash poor "start-up" company to a fully reporting company can sometimes be tricky..


Full disclosure, I cuurently hold no position here but have traded it on and off over the last 6 months.

GLTA