<<Considering what you've said, there may be a lot of DOWN pressure on FTEL until May. Is that correct?>>
Actually, the conversions MUST stop by May. However, it is possible that the conversions took place and will take place when the stock is just over a dollar and that the stock will be sold later than May 1999.
If higher FTEL is when June 1, 1999 comes around, the less likely it is that selling will take place after June 1, 1999, IMO. This is because it might not be possible or prudent for them to sell their stock near $1.00 per share, but the higher it goes the more likely they are to sell what they haven't sold yet.
In conclusion, the stock can convert to as low a price as $ 1.00. Now that I think about it, I would assume that the conversions are already done, but now they are looking to sell. However, you can be sure that if they didn't convert for some reson, that they will convert by May 1999. Again, they may have shares that they are looking to sell as soon as they can.
I'd call the Stock Transfer Agent to find out how many shares they have now. I think they are already converted, and that they are just looking for the opportunity to sell. Will they be willing to sell at a loss for those shares which they have remaining? Maybe.
I hope this helps.
FTEL: $ .75b
VALUESPEC |
