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

To: Mama Bear who wrote (614)	7/10/1999 2:25:00 PM
From: David Sirk	Read Replies (1) \| Respond to of 1438

Correct me if I'm wrong on this folks. From what I have seen on these Floorless CD's, they are usually issued with poor terms to companies that have failed to institute there Business plan. The shakyer the Company the more sooner you would be able to convert. Correct? So if you had a growing start up with a need for some timely cash infusion and you were able to negotiate a 5 year Floorless CD deal with a one year conversion restriction this could be a case were such a deal could be a WIN WIN for both parties. Am I right or in denile?

To: Mama Bear who wrote (614)	7/10/1999 3:06:00 PM
From: Bilow	Respond to of 1438

Hi Mama Bear; Any comment on the statement that floorless stuff is usually just the death rails of failing companies? The way I see it, it is just a sign that the company is going under, not that the management is any less self serving than otherwise. I guess I don't see any reason to put a moral qualifier on it. The fact is that the floorless itself is an excellent indication to shareholders to run for the hills. If management were prevented from doing these, they would have to declare bankruptcy earlier, and there would, no doubt, be a lot of shareholders who would fail to get out of the stock. In other words, we, as shareholders, would have one less early indication that the company was going south. By the way, if you know of any companies whose management actually has the best interests of the shareholders as opposed to management in mind, could you PM me immediately with the symbols? On the other hand, maybe it isn't a good idea to invest in the stock of companies run by the feebleminded... -- Carl