Floorless Preferred Stock/Debenture Message Board

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Strategies & Market Trends : Floorless Preferred Stock/Debenture

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To: Harold Feller who wrote (42)	8/19/1998 12:02:00 AM
From: Razorbak	Read Replies (2) of 1438

Price Increases After Floorless Financings? <<Anyone know of a penny stock (since this is actually a penny stock story) that has had a price INCREASE after floorless preferred has been issued?>> Hal: You probably already know about this one, but just in case you don't, take a look at the AIPN chart for the last 2 years. quote.yahoo.com Notice that the stock price rose quite rapidly shortly after management filed its 10-Q in mid-August 1997. I remember this quite well because I called everyone's attention to the "floorless" provisions in the 10-Q in the following post, and that post sparked an inevitable firestorm of controversy which ultimately lasted for the better part of a year. Message 1982853 AIPN's price increase may have been due to heavy buying by momentum players still in the early stages of enchantment over one of the biggest "story" stocks of the year. Ulimately, however, AIPN began to fall, and fall rapidly. Today it closed at 1 1/32, down from a high of 7 at the peak of euphoria. Question: Did the price fall because of heavy shorting due to the floorless debenture, or did it fall because of other intrinsic or extrinsic factors? No one knows for sure, but the shareholders that once cursed me for having flagged the floorless issue right after the SEC filing have ultimately shifted most of their venom towards management for using such an inherently destructive financing vehicle. Just my thoughts. Take it for what it's worth, which probably ain't much. Seems like I always have trouble figuring out these oil stocks and convertible debentures. ;^) Razor

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