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Strategies & Market Trends : Floorless Preferred Stock/Debenture

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To: Sir Auric Goldfinger who wrote (392)5/3/1999 9:44:00 PM
From: Zeev Hed  Read Replies (1) of 1438
 
Auric, from the little I have seen, it looks like the leaky floorless issue. That one was issued last April, almost a year ago, and it might have been responsible for the swoon then, I know not what caused the sudden rise in the last month, maybe the impending launch of their deal with the PHLX. Do you know what kind of revenues that will generate?

I could not find the details of the pricing of those puts, but it seems that the company is the one able to select the timing, so it gives them some flexibility, if they can generate cash. It may not be such a slam dunk situation after all. It may depend on their ability to generate some positive cash flow fast. If they cannot, then the stock will be under constant spiraling pressure.

Zeev

Zeev
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