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

To: P314159d who wrote (820)	8/10/1999 12:23:00 AM
From: John Dwyer	Read Replies (2) \| Respond to of 1438

ARIA was mentioned awhile back but on the ARIA thread we are revisiting this floorless offering: sec.gov Any of you floorless experts want to have a look at this? It seems very complicated and I am trying to gauge just how bad this is. Anybody know the buyers, Prometheon or Brown-Simpson? There has been a great discussion on some of the details of this deal over the last couple weeks on the ARIA thread. thanks, John

To: P314159d who wrote (820)	8/10/1999 7:46:00 AM
From: Zeev Hed	Read Replies (2) \| Respond to of 1438

P, of course CC is "quality folk", they are quality folk for their limited partners (I presume they are a "partnership"), they optimize return while minimizing risks. They were involved in Osicom and SCUR which tumbled shortly after the PP. If they played their game right, they would have shorted above the ceiling, getting back all the PP money (and still collecting interest). They do not have to "drive" the price down, it "happens" on its own. Then they have a variety of options, depending on how well the company is executing, if the company does not execute and the stock price falls under the ceiling, they can continue and short (with impunity because of the floorless nature) inducing the death spiral. Zeev