Roger's 1998 Short Picks Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Roger's 1998 Short Picks

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Roger A. Babb who wrote (950)	1/18/1998 11:20:00 PM
From: vegetarian	Read Replies (2) of 18691

The HCOM floorless convertible has interesting twists. It seems the convertible holders also get warrants attached to them which can be used to buy the stock in the 13-15$ range. So after running the stock into ground, converting the preferred to common at a low price and buying a bulk of them, they EVEN have an incentive to run the stock up so that the warrants may have any value. The company loves roller-coasters; also another condition is that the company can redeem the convertible at 125% face value when it wants that would imply that the company wants the buyers of convertibles to do the run-down-convert-run-up process in a hurry. They are going to apply to SEC for shares required for the convertible issue by Jan31 but they are not saying how many shares (the convertible deal is 2M$ deal), so it is hard to know how low they expect the stock to fall (unlike ESMC). Any thoughts on where this may be headed?

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next