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Technology Stocks : CellularVision (CVUS): 2-way LMDS wireless cable.
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To: James Fink who wrote (1853)4/7/1998 4:46:00 PM
From: space cadet   of 2063
 
It truly is awful. When it happens then you can expect a decline between 75-95%. A recent example was esmc which I and Roger and lots of people jumped all over on the Roger Babb thread. It was around 10 at the time and now its around 1.5, which is typical. Another example I was on the wrong side of was a crappy small nasdaq stock which went from 2-3 to 30c. In the latter case the sleazy management made sure that while they were eliminating all the present shareholders' equity they themselves would be provided for (by issuing themselves new shares- lots and lots of new shares since at 30c it takes a lot of new shares to have anything). Floorless convertibles are an expression of utter contempt for the present shareholders. It's about as low as you can go (legally) in America. A lot of people think it should be illegal but it isn't. It's doubtful CVUS would resort to so desparate an action. If they did I would assume that they too provided for themselves to be issued millions of new shares to make up for the coming catastrophe. And the worst thing is, unlike esmc, cvus is under 5 bucks and so not shortable!
That really is a worst case scenario which I was just trying to warn people about. In all likelihood there is some floor but if it's low (like $2) then the stock will probably collapse to that level.
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