ASTM-AASTROM BIOSCIENCES: STEM CELL RESEARCH Message Board

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Biotech / Medical : ASTM-AASTROM BIOSCIENCES: STEM CELL RESEARCH

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To: Fred Puppet who wrote (33)	11/26/1997 11:34:00 AM
From: Fred Puppet	Read Replies (1) of 1084

[ Good News for the Shorts ] biz.yahoo.com What would you rather have: a common share or a convertible 5% preferred share? Obviously the preferred share is better. If the company does well, you convert and enjoy all of the upside. Plus you get 5% while you wait. If the company fails, you don't convert and are first in line to cash out. ASTM is selling convertible preferred shares at $5. The common shares must be worth a lot less, in the opinion of the company. Whenever a company has to resort to such unfavorable terms to raise cash, their prospects are even worse than the shorts believed. It will be interesting to see if the buyer of the convertible 5% preferred at $5 decides to lock in a profit by shorting the common at $6 3/4. That's an instant 35% profit, plus 5% annually until they convert.

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