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Non-Tech : Auric Goldfinger's Short List -- Ignore unavailable to you. Want to Upgrade?

To: Gerald Walls who wrote (2885)	8/16/1999 8:46:00 PM
From: Larry Brubaker	Respond to of 19428

Gerald, looks to me like you are correct on both counts. There is a floor and the bandits can only short without risk above the floor.

To: Gerald Walls who wrote (2885)	8/16/1999 9:27:00 PM
From: Mad2	Respond to of 19428

Gerald,I read this to mean that the authorization has limited the number of common shares that can be issued to redeam the prefered. Should the common be below $3.60 per share (not including the accrued interest), then the remaining portion of the prefered shares would be redeamed with cash within the time frame specified. Kind of a "floorless with a basement". Limits the amount of dilution to common holders and exposes prefered holders to a certian level of risk. Unfortunatly for common holders the prefered holders can still be rewarded should the share price fall below the "floor" as they get a equal number of shares for a smaller amount of their prefered shares. Thus perfered holders benifit from a drop in price of the common below the floor. Mad2