Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Zeev Hed who wrote (922)	8/31/1999 11:39:00 AM
From: Jeffrey S. Mitchell	Read Replies (1) \| Respond to of 1438

Double Ouch: Message 11112219 My analysis: Message 11116613 - Jeff

To: Zeev Hed who wrote (922)	9/2/1999 1:42:00 AM
From: Larry Brubaker	Read Replies (1) \| Respond to of 1438

<<That is why from Glen point of view they should short as much as possible for their $20 MM (the ceiling is around what $7.8 or $10, I forgot the details) above the ceiling.>> Zeev, I believe the ceiling is $10.79. I believe it was only above the ceiling briefly on the day the deal was done, and not since then. Certainly there has been little to no opportunity for Rose Glen to put in a hedge. Seems kind of unusual on these floorless deals to place the ceiling at about the price the stock was trading for at the time of the deal. Usually the ceiling is a discount to the trading price when the deal was done, allowing for the investor to immediately begin placing his hedge. There is a temporary floor for conversion at $7.85. It would seem to me that ASTN might be worth playing long at current prices, and particularly if it drifts lower. On the assumption that the price will rise high enough to allow Rose Glen to put in a hedge at a price comfortably above the ceiling. Any thoughts?