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Microcap & Penny Stocks : JTS- "A Nordic Drive in Every PC and laptop"

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To: tbevan who wrote (1017)7/7/1997 9:40:00 PM
From: Patricia Zatarain   of 1985
 
Well if you think JTS has a chance to survive the bonds are a great deal, they convert into stock at about 9/16 (I believe, the bonds covert into stock at a 15% premium, can anyone confirm this?) and they are paying 14% or so.
So while you are holding JTS and waiting for a run up ( if there is one), the bonds are paying a great yield. If the company goes bust, there is a chance bondholders will get something, stockholders will be out in the cold.
The point is the bonds give us another insight into the movement of this stock, which most companies this size don't offer. I still feel the bonds will strengthen prior to a move in the stock (like options) and this may give us a hint of when to buy.

Just checked the bonds and they are way down, 8 points today, the bigest move in a while, so it looks like we haven't seen the bottom yet. Why would the bonds drop so much with JTS about even for the day? I don't claim to understand all this, I just feel bond and stock movement is linked and that stockholders would benefit from comparing the relative movement of the two instruments.
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