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

To: P314159d who wrote (958)	9/11/1999 2:31:00 AM
From: Larry Brubaker	Read Replies (1) \| Respond to of 1438

P3, I'd be somewhat surprised if it goes as high as $10. $9 has been a pretty firm top since the floorless was done. It is likely that is the area that Castle Creek et al are putting in their hedge, and that is nicely above the ceiling conversion price of $6.37. $9 allows them to lock in a nice gain of nearly 50%. Although your strategy of taking your position incrementally makes sense. Note that the ceiling conversion price declines to $4.46 in April 00, if the stock price is below this level come April. Therefore, I would think it quite likely the price declines to below that level by April. In the meantime, I would not be surprised to see a trading range between about $6 and $9. With the bandits shorting at the high end and covering some at the low end. While steadily increasing their overall short position. That's my guess for how they'll play it. The guess is based on closely watching how the VLNC floorless has played out, but still is just a guess.

To: P314159d who wrote (958)	9/11/1999 10:52:00 AM
From: xcr600	Read Replies (1) \| Respond to of 1438

WSTL- any idea what happened Thursday? Huge volume day and drove the price from 7 1/8 up a point. No news or anything that I could find. Covered for -3/8. Didn't know what to expect with the vol surge. Friday was still a 900k+ day. WEBB- now NS at Datek. LEaves me to believe that a large short position has already been laid out in this stock. When the CC financing was originally announced shares were announced. I'll check around Monday at some other brokerages. x