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

To: Zeev Hed who wrote (1130)	1/27/2000 8:42:00 PM
From: caly	Respond to of 1438

Zeev, Thanks so much for taking to look at it! I'm still trying to get a grasp on all this. You're a scholar and a gentleman. Thanks again. caly

To: Zeev Hed who wrote (1130)	2/5/2000 10:00:00 PM
From: Kailash	Read Replies (1) \| Respond to of 1438

Zeev - Appreciate your analyses. I've been trying to figure out what's going on with PGTV. They're aggressively purchasing rivals. As a result, they're heavily indebted and just got another credit line of 500 million; long-term debt is already more than ten times assets. Then they issued 300 million in convertible stock. Operating losses remain huge. The stock price, needless to say, is sky-rocketing. Shorts are starting to hit the stock; analysts are busy upgrading. The press release from 20 Jan describes the latest convertibles: "The Series C convertible preferred stock will pay an annual dividend of 6.50% of the $100 per share liquidation preference, with dividends payable in cash or, at Pegasus' option, in Class A common stock. The Series C convertible preferred stock will be convertible at any time into shares of the Company's Class A common stock. The initial conversion price was set at $127.578 per common share, representing a 125% conversion premium." The stock promptly rose to that level. What's your take on the situation? Kailash