KASTEN CHASE APPLIED RESEARCH. Message Board

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Gold/Mining/Energy : KASTEN CHASE APPLIED RESEARCH.

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To: Goldberry who wrote (892)	7/24/1999 12:30:00 PM
From: Professor Dotcomm	of 1247

You are quite right - if the stock is 10% above $2.31 there will only be the share for share conversion. However if it is below at, say, $0.50, and KCA does not have the cash to redeem, then presumably KCA would have to do a treasury issue of about 10 million at $0.50 to raise the cash to redeem the pref. Like you I hope it won't come to this. However, the unconvinced don't like to see the principal shareholders in front of them for dividends or liquidation. Such people don't give a damn when the common is trading healthily higher but when it is down at thse levels, such investors tend to go somewhere else.

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