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

To: Cathi Wierzbicki who wrote (1016)	10/29/1999 12:19:00 PM
From: Larry Brubaker	Respond to of 1438

Cathi, I looked at the PR for the SCUR financing, but not the filing. From the PR, it looks like a leaky floorless (e.g., shares are sold at a discount to the prevailing market price at the time the shares are sold). However, you may want to read the filing for further details, because the PR says something about the company can set a minimum price (e.g., a floor). While I did not look at this in any detail, I would much rather see shares sold at a fixed price than a variable price.

To: Cathi Wierzbicki who wrote (1016)	10/29/1999 6:00:00 PM
From: Zeev Hed	Read Replies (1) \| Respond to of 1438

Cathi, often the holders will either preshort or get the company to induce a nice little rally into which to short. An examples of a leaky floorless that went down the drain are RNTK. I believe that VLNC is subject to a similar current monthly floorless, and while the price has stopped collapsing, it is meeting serious selling everytime a 20% rally from the low ensues. I would look at another situation if you were considering a long position. Zeev