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To: BDR who wrote (49)	8/13/1999 3:16:00 PM
From: Puck	Respond to of 60

I think I'll tell them.

To: BDR who wrote (49)	8/13/1999 9:29:00 PM
From: Mr. Jens Tingleff	Read Replies (2) \| Respond to of 60

Convertible preferred - How does it work: Seen from the preferred investors point of view: a) I get preferred shares and a contract, that prevent the company to dilute. b) As the company has potential, and as I'm in a world where I can make the market move by dropping a word here and there, the price will rise. (and people can see that no new shares are being issued) c) I shortsell the common shares when it is up 30-50%, I earned 50% in a couple of months. d) During the coming period I claim my due 10% dividend :-) e) when due I claim my common shares, and deliver to where ever sold. f) Then I put the part of the (hidden)contract in action, that say: "If common shares at the time of issuing is worth less that original investment, the company must pay the difference to me, eg as a kind of finders fee" re question if they can short - they can short anything, they are connected to brokers supplying international good long term customers - not a problem. They may even sell at a contract saying that the buyer must hold for a year, and warrant say 30% gain. Here is an example of how it can work even without registered short selling: Offshore opportunity - ( I get many of such in e-mails, I once made inquiry of offshore trust funds soo....) Pay 30K$ and get 37K$ in 12 months. All right, I order my trust fund to pay 30K$ The manager of the opportunity investment then put the appropriate number of shares in my (say Belize) trust funds name. (now they are in fact short sold) When they are issued he just plain sell them to market. By the way that is also how preferred can land on many more hands, than what the company expect to have of holders. Kr Jens