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Technology Stocks : LUMM - Lumenon Innovative Lightwave Technology Inc.
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To: lindend who wrote (1162)11/21/1999 11:10:00 AM
From: Steve Landrum  Read Replies (1) of 2484
 
Linden,

I believe you are using the term "floorless convertible" too loosely. My understanding of a floorless convertible is when the conversion price is based upon a future stock price. This provides an incentive for the convertible security holders to short the stock so that they will convert into as many shares at the lowest price possible.

I don't see that this is the case here. What incentive do any warrant holders have to drive the price down? I don't see any. While the conversion prices are low, it appears at first glance that the conversion prices reflect the market price near the time when the agreements were struck. (I haven't verified this, but have been loosely following lumm's action)
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