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Strategies & Market Trends : Floorless Preferred Stock/Debenture

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To: Jonathan Babb who wrote (132)10/11/1998 1:49:00 AM
From: Dave K  Read Replies (1) of 1438
 
Nice summary of the status quo. I think most of us are on the same page.

Wanted to confirm why you included "biotech" in your statement..."If you rule out high-profile internet, networking, teleco, and biotech companies". Is this because their value is already devastated ?.

> We are currently experiencing a credit crunch, and the possibility
> of a more serious credit crunch is around the corner.

Agree. A sad ramification of all this is the potential disruption to financing in the equity marketfor a long time, especially small tech companies. There may be a cure for cancer or Alzheimers in pre-clinical development right now which may never be completed.

> The equity line appears to be an alternative that is more favorable
> to both the company and the investor under these new circumstances.

Why favorable ?

( Respond via Private Message if you prefer )

Thanks

Dave

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