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

To: Puck who wrote (805)	8/7/1999 9:56:00 PM
From: Larry Brubaker	Respond to of 1438

Puck, thanks for the info. Of course, the floorless preferred stock/debentures we follow on this thread have all of the same nasty characteristics as Reg. S, but don't have to be issued to foreign investors, and don't have to be held for any particular period of time. Therefore, I'd guess floorless debentures and convertibles are even more toxic than Reg. S, with the new holding restrictions on those.

To: Puck who wrote (805)	8/7/1999 9:56:00 PM
From: Zeev Hed	Read Replies (1) \| Respond to of 1438

Puck, actually, the new Reg S is really "toothless, it forces the companies to register the event with the SEC within 30 or 40 days, but the Reg S bandits can start and sell short equivalent securities here (and often without borrowing shares in offshore accounts). WE have now a spate of Reg D floorless in which first an unregistered security (sold without registration only to "accredited investors") is sold, but that security is convertible to common stock, typically at a variable rate which a discount to the trailing price of the common (see the second or third post on this thread to see how damaging these are). These new common stock are registered and time after time you will see the number of shares ballooning over time, sometimes by a factor of 10, resulting in the existing stock holder being diluted to 10% or worse of their original equity. Zeev