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Strategies & Market Trends : Floorless Preferred Stock/Debenture

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To: Dug who wrote (390)4/29/1999 11:43:00 AM
From: rrufff   of 1438
 
I think that there are circumstances in closely controlled companies where motivation by the controlling parties is so strong that they will work to move the stock higher as time comes for conversion. With small float, insiders can play the reverse game that the shorting (MM and/or vulture lenders) can play. Clearly doesn't makes sense to generalize and say every floorless will kill, although in most cases it is a sign of death spiral.
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