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Strategies & Market Trends : Floorless Preferred Stock/Debenture

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To: Mama Bear who wrote (83)10/1/1998 11:49:00 AM
From: Ignite44  Read Replies (1) of 1438
 
Why would the investor who also has warrents want to drive the
price of the stock down?? If the stock price goes to pennies the
entire enterprise is at risk and he loses everything. If however
he supports the company he wins. Don't forget the investor also
holds warrents that can be exercised in the mid 3's so again there
is an offsetting intererst to keep him honest. You also have to
look at the track record of the investor which has historically
supported companies of this nature.

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