Floorless Preferred Stock/Debenture Message Board

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Strategies & Market Trends : Floorless Preferred Stock/Debenture

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To: StockHawk who wrote (380)	4/17/1999 5:40:00 PM
From: RockyBalboa	Read Replies (1) of 1438

The floor is quite low, at $2.49. Plus, also shares are delivered in return for the warrants under certain circumstances. One is if the floor price is crossed. I would be more concerned right now, when RRRR trades at $12, hence, the cap (after 181 days, the fixed conversion price of $5.27) would apply and, in any case it pays off to short the stock and convert later, at whatever price the common may trade then. Well it makes no sense to convert right now, as the initial conversion is 140% of the "fixed price" (after 181 days), but for the holder of the debenture it makes sense to short some shares now. IS

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