Hi Eric:
First, I know a lot of people try to balance their portfolios, but I have never attempted to do this, so for me to give any advice regarding asset reallocation would be wrong. I do not, however, have all my money invested in tech stock; I also like banks.
Second, I like the idea of converting some of my shares into SUNW bonds. I do not know, however, how difficult something like this would be for SUNW to implement. The pricing and conversion ration might be real tricky for SUNW given the price movements of the common stock. Also, by getting our shares in exchange for bonds, SUNW would have to sell our (old) common shares on the open market to get the money they want, which they would not be getting by just swapping our common shares for the new bonds.
I have never heard of a company doing a common stock for convertible bond swap with shareholders, but this does not mean it has never happened, just that I have never heard of it myself.
If I were one of the powers that be at SUNW, I would not want to go though the headaches of swapping common stock for convertible bonds.
What would be nice, real nice, would be for existing SUNW shareholders to be given first crack at the bonds, being given the option to buy a maximum number of bonds based on one's common share holdings.
Lynn |
