Floorless Preferred Stock/Debenture Message Board

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Strategies & Market Trends : Floorless Preferred Stock/Debenture

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To: Zeev Hed who wrote (256)	2/14/1999 7:50:00 PM
From: Crossy	Read Replies (1) of 1438

Zeev, weeks back (last week of December) I found out that NTPL (NEtplex) , an IT-consulting company forged some interesting partnerships with key building-block manufacturers with a "must" appeal for web-scenario cases. For instance they are now a practice to Packeteer, IMHO one of the best ready solutions for web server based load balancing. Well, back then the stock was at $1. In fact it traded around $1 for a number of months. Now it's at $2.80. Company not an OTC but a Nasdaq stock. Profits not too far away but Price to Sales ratio still low at 0,35. My only concern: they financed an acquisition in September with a floorless of $1,5 million. 1 year 9% dividend for the preferred, then 15% - so they got an incentive to pay back very soon I think <G>. Also conversion period starts after 5 years or under "change of control" of the company. Warrant for "upside" protection were also issued. I do like this company but I don't welcome a floorless in the boat. OTOH they can pay back at face value (without a penalty) and the fact that dividends will increase from 9% to 15% after the 1st year puts another incentive to pay back this floorless very quick to the company. Also the preferred cannot convert now - but only in five years from now. What do you think about this on NTPL ?? Also I would like to know what you think about a possible an end-game play. BRAVEHART thinks that VRGN last floorless is now finished (conversion finished). Is this the prerequesite for the end-game spike(s) ?? best regards CROSSY VRGN.

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