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Technology Stocks : Global Crossing - GX (formerly GBLX)
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To: JDN who wrote (2958)10/30/1999 7:18:00 AM
From: PaperChase  Read Replies (2) of 15615
 
Well the $45 conversion price is good information to have for trading since everyone knows the legal trigger point. However it also psychologically sets the trading upside limit for this stock over the short-term of about 6 months. So the momentum traders are going to exit now. I bailed when the news crossed the wire.

FWIW, there isn't strong motivation for the preferred shareholders to convert at $45 or even $55. They are in a better position of having a higher secured position by owning the preferred stock. They'll only want to convert to common when they want to cash out and when the conversion won't injure the share price dramatically, probably in 2 or 3 years.
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