Floorless Preferred Stock/Debenture Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Floorless Preferred Stock/Debenture

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: David C. Burns who wrote (238)	1/20/1999 3:14:00 PM
From: Zeev Hed	Read Replies (2) of 1438

David, I am not sure that Ben's convertible is floorless. But in a floorless situation (as well as in normal preferred issues) the only risk is failure of the company. The holder keeps getting interest or dividends (which ever it may be) until the issue is either redeemed or converted. In floorless situation, if you hold that paper, you may want to as rapidly as possible cover your buts (hedge your position). In IMON and PCMS there was even a pumping operation after the issuance (IMON was pumped from around $2 to around $9 before they let it sink, and frankly, I think that the SEC should look at the activity there since it smells), if you know such an operation is in progress, wait a little to lay your hedging. Zeev

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next