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Strategies & Market Trends : Floorless Preferred Stock/Debenture -- Ignore unavailable to you. Want to Upgrade?

To: Spark who wrote (503)	6/26/1999 4:29:00 PM
From: Zeev Hed	Respond to of 1438

Spark, as legal as they come. They file their S-3 with the SEC and the SEC bless the shenanigans. Legal thievery that even the Mafia would be proud of. But our "protector" the SEC lets all these companies fail by the dozen, it is all legal. The old usurious high rate junk bonds were not as toxic as this new variety of debentures. But you know what? There are always stock holders that are going to stay "married" to the dream, or have some misplaced loyalty to the company (as if the company was loyal to them), and they stay in and of course average down... Zeev

To: Spark who wrote (503)	6/26/1999 4:31:00 PM
From: RockyBalboa	Read Replies (1) \| Respond to of 1438

Careful. You can be sued, if you suppose criminality. It is indeed a shame what a convertible does to the stock performance, for example see: quote.yahoo.com, was KKRO/KKRE quote.yahoo.com ENML quote.yahoo.com SCUR though it is legitimate if the "VC" (sometimes nicked "vulture capitalists") as well as the company obeys some simple rules, amongst them are size, eventual sharecolder proxy, proper registration, including shortselling "hedging" clauses upon closing the placement. And they are all very good traders. Much more if a news blitz is used to unload shares into it. On the other hand I would expect much more Ch. 11 and 7s if junk equity issues were tightened. In some cases "SYQT" not even vultures could help.