Floorless Preferred Stock/Debenture Message Board

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Strategies & Market Trends : Floorless Preferred Stock/Debenture

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To: Roger A. Babb who wrote (1348)	12/20/2001 11:34:34 AM
From: Hawkmoon	Read Replies (1) of 1438

Didn't have time to revise my post about CPN but I had failed to realize they had obtained a premium on those debentures, rather than offering them at a discount. So thus the floor on the stock should be around $18/share once tax loss selling has finished, which should combine with the previous two $18/share support levels that were penetrated when Moody's downgraded their debt. So now there should be some good upside on the stock, potentially to the $25/share range, where as you state, they probably would short against an eventual conversion of the debentures. This deal was much better (given the circumstances) for CPN than I first imagined. I was expecting a 20-25% discount. Hawk

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