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

To: DoubleOddBuck who wrote (510)	6/26/1999 9:49:00 PM
From: Zeev Hed	Read Replies (1) \| Respond to of 1438

Oh, this must be preferred issued a long time ago, but in any event, that 10 MM shares is sooner or later going to weigh on the stock price. However, it is not floorless in that you know exactly the extent of the expected dilution (if it is $2 MM convertible at $.05, as you mentioned, I believe that comes to 40 MM shares). Of course if the numbers of shares is 400 MM these 40 MM will not make much of a difference, but if not, beware, you are right to have a strange feeling in your stomach. I have no idea what are the exact circumstances, but it looks from the little you described like a better short than a long. Zeev