Bill Wexler's Dog Pound Message Board

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Non-Tech : Bill Wexler's Dog Pound

REFR 1.997

+13.5%

Nov 21 9:30 AM EST

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To: lindend who wrote (3340)	8/27/1999 8:03:00 PM
From: Larry Brubaker	Read Replies (1) of 10293

Linden, while Castle Creek does indeed specialize in floorless convertibles, that does not necessarily mean a new deal with Castle Creek equals an immediate shorting opportunity. Often the Castle Creek deals involve a delay before the floorless kicks in. Often this delay allows the stock price to go up substantially before it goes down. Cases in point are SCUR and VLNC. Both ran up substantially before the death spiral began. In the case of VLNC, the death spiral began only recently, a full year after the Castle Creek deal was inked. With SCUR, I believe the delay between deal and death spiral was about 6-7 months. IMO, one should read and understand the filings related to this deal before one decides how to play it. The next move could well be up, if the history of Castle Creek deals is any teacher.

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