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

To: Gerald Walls who wrote (907)	8/29/1999 3:06:00 AM
From: Bilow	Read Replies (1) \| Respond to of 1438

Hi Gerald Walls; Okay. I give up. What does happen when shareholder votes happen, and somebody's shares are lent out? I never thought of this... -- Carl

To: Gerald Walls who wrote (907)	8/29/1999 10:14:00 AM
From: mst2000	Read Replies (1) \| Respond to of 1438

Pardon me, but when the dividend is paid, it is only paid on 10,000 shares - someone does not get it it (the company cannot be made to pay dividends on more shares than it has actually issued -- I believe the shorter is the one who pays the dividend declared by the company to the person who originally he sold his borrowed stock to, while the lender of the share gets paid directly from the company). But I guess the sale of the "borrowed stock" creates the illusion that there is more supply. The rest of your answer was a classic non-answer - but I know, you're neutral. MST

To: Gerald Walls who wrote (907)	8/29/1999 10:35:00 AM
From: mst2000	Read Replies (1) \| Respond to of 1438

BTW - to use the analogy of telemarketers fleecing old ladies to describe why Rose Glen, with its history of successful investments in publicly traded companies (CMGI and Cybercash come to mind), might adopt a manipulative and possibly illegal strategy to improve its conversion rights . . well . . . it's an interesting and revealing analogy -- revealing about you, not about Rose Glen. I can tell you are not neutral on the issue of manipulation of so-called floorless conversion rights, even if you are neutral on ASTN. To me, it defies logic that anybodywould make a $20 MM investment on the long side and then embark on a manipulative strategy to drive the price of the stock down so as to improve conversion rights, just because the PP agreement contains conversion hedges that protect the investor against market forces driving the value of the stock down before the conversions can actually take place. Interesting, but logic defying if you ask me. Sometimes, where there's smoke, there's fire - - and sometimes, smoke is just steam which looks a lot like smoke but evaporates into thin air when exposed to the light of day. MST