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Sergio,the market would have to do that adjusting. The conversion of preferred to common is set at 1.4375 shares of common for each share of preferred.As you stated,and I agreed,the prices of QUST and QUSTP prior,will most likely be inline to reflect that(ie. value of (P) will be 1.4375 the value of (C)).But as for the dividend,we won't know the amount per share until it is declared,so I'm not sure it will be reflected in the price(preferred being 1.4375 higher,plus the additional dividend) prior to conversion(actual day it is done).The conversion ratio is locked,but the prices of each stock aren't,that's up to the market. Will the market see this? That's where the gamble comes in,which I see no downside on,either you get 1.4375 sh or you get 1.4375 plus a backdoor dividend. DD (PS: was told the dividend would most likely be paid in stock,so I just don't see a price adjustment to the preferred-but I most definitely could be wrong-and it would all be in the timing of the trade) |
