Roger and thread, here are Two Floorless convertible Gifts to short away:
1. SOF: 5M floorless offered Jan 5, around 6 3/4 thinly traded.
Market cap 46M, no cash, huge debt, decelerating revenue.
Loss of 40c for sept Q.
No analysts tracking the company (so earnings don't count much).
6.8M shares, assets 11.8M liabilities 10.5M, LT debt 11.8M, book value 29c.
7 instituitions hold 2.9% shares.
Conversion price not to exceed $8.28, and floating avg of 2 trading days in a 20 day period. 5% dividend.
2. EPTG: 12.5M convertible placed on Nov 14, 1997 (series D).
Price not to exceed $11.63, plus warrants issued.
No analysts covering it, trading barely at 5 1/8 near the support.
Showed loss of 38c, 17M shares outstanding, larger 9mo loss up to 31c from 24c.
Book value 26c, Price/sales=5, price/book=19.3 .
13 Instituitions hold 5.5% of the shares, capitalization about 90M so dilution from floorless is more than 10%.
4% annual prem on the conv; floorless conversion at 94% of 5 day avg in a 25 day period.
Note: I shorted both of these today, my numbers above are from internet and SEC filings and would suggest that you do your research independently to confirm it (because the internet data can be wrong), and correct me if any data is wrong.
Feel free to distribute the research to get more investors on our side of the trade.
Good luck and will appreciate any comments. |
