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

To: ynot who wrote (612)	7/10/1999 3:30:00 PM
From: Zeev Hed	Read Replies (1) \| Respond to of 1438

ynot, apparently there were a number of floorless, and a small one was converted, but there is a floorless to St Annes (?) of 6 million, this is of the "leaky floorless" nature, namely the company "can" (of course they will when money is short) put the stock to the floorless at 86% of the then market price (if stock above $4) and 84% if below $4/share. There is another floorless, but none of the documents I perused show for how much. Interestingly, they did raise some straight equity (2 MM shares or so ) around $2/share, so my count of available money is about $10 MM. But, they acquired Trojan that is leaking heavily, so I expect their burn rate to be in the $3 MM quarterly, since their income is barely few hundred k quarterly, I think that they are going to run into problems. Careful if shorting they are adept at cascading news release. The floorless has a ceiling at $6, so the bandits do best if they complete full shorting above that price (get their money off the table) and then, when the price goes down, add shorting to the full $6 MM. Zeev