George, I do not know the specifics of your situation, however, in a true floorless, the floorless bandits rarely covers (sometimes to make "double profits, they will cover and cause a short interim rally into which they further short), the decline of the stock allows them to increase their short position gradually, until the stock goes down to pennies. Sometimes it takes a very short time (like CTYS) and sometimes, like HEC and RNTK it takes longer. TTRIF is another example where the stock is already 1/10 of its previous value and the bottom is still not in sight and the number of shares keep multiplying.
In general, as soon as you learn that a company you are invested in issued floorless securities, bail out first, then start and ask questions about the specifics.
If you could post details of the floorless you are involved with (including number of issues outstanding, their growth rate (conversion as they go), and the maximum authorized number of shares (often the top target the floorless shoot at since at that point their action becomes widely known and no longer that effective) authorized.
Zeev |
