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

To: Zeev Hed who wrote (763)	7/29/1999 9:36:00 PM
From: Larry Brubaker	Read Replies (1) \| Respond to of 1438

Zeev, UOLP is now sitting right at its conversion ceiling. They've issued several PR's which have done nothing to support the stock. The debentures cannot be converted until September 15. The company has said it would use money they get from the Hambrecht and Quist financing (shares to be "put" by UOLP at 85% of the market price when the shares are put) to pay off the debenture holders rather than convert below the $5.50 ceiling. However, looking at UOLP's balance sheet, it looks to me like they will need every penny from the H&Q financing for working capital. Given the above, I'd guess it won't take long for the stock to sink below the conversion ceiling and begin a death spiral. Any thoughts?