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

To: Peter Sherman who wrote (1107)	1/13/2000 12:36:00 PM
From: Art M	Respond to of 1438

Take a look at VCMP

To: Peter Sherman who wrote (1107)	1/13/2000 9:44:00 PM
From: Larry Brubaker	Respond to of 1438

Post #3 on this thread is a classic for understanding the worst case scenario of how floorless convertibles can work. I'd add that it is important to look at each floorless situation individually, and to understand the terms of each floorless deal. The simple presence of a floorless is not necessarily a signal that an immediate short is a guaranteed profit. Floorless issuances come in many varieties, some more toxic than others.

To: Peter Sherman who wrote (1107)	1/17/2000 6:19:00 PM
From: LiPolymer	Read Replies (1) \| Respond to of 1438

Peter, just to fill in some slight gaps left by some others responding to your question, IMO it is prudent to keep in mind what can happen if a company does happen to survive a floorless, e.g. ANCR and VLNC. There is so much artificial downside pressure from the death spiral attempt that, once removed, the share price can rise rather dramatically. Shorting more at higher levels is the natural response, but may not always be a wise decision, as some of the Pound Puppies are finding out now with VLNC. As Larry says, there are no guarantees. Tread carefully. All IMHO...regards, Gary