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Strategies & Market Trends : Value Investing

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To: TimbaBear who wrote (15949)	12/25/2002 2:22:50 PM
From: Don Earl	Read Replies (1) of 78628

Timba, <<<They closed yesterday at the expensive price of $.26/share!>>> .26 would be terribly expensive under the circumstances. Once the plan is approved, the existing stock will be canceled, and new stock will be issued to everyone EXCEPT existing shareholders. You're basically looking at a 100% chance of a total loss. If you were willing to take a position in a VERY highly speculative play, you're only real chance of coming up with something with any kind of market value would be the senior notes. I'm personally not set up to trade corporate debt, and while I have a vague understanding of what the strategy might be, have no hands on experience on this kind of play. The idea would be to purchase some of the debt at a deep discount to face value and hope that eventually the stock you receive in the swap will be worth more than you paid for the debt. IMO, it's a play better left to those with a far higher level of expertise in evaluating the level of risk involved, and that's assuming there is a current market for the debt and there is an inventory of the debt available for sale. Have a Merry Christmas and don't buy stock with a Q on the end of the ticker symbol.

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