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To: LLCF who wrote (87507)	3/29/2001 12:42:18 PM
From: Box-By-The-Riviera™	Read Replies (1) \| Respond to of 436258

just in case you need this: from internet stock report Convertibles: Here, an investor gets a security that can be converted into common stock. This security may be a preferred stock, which gets higher priority than common stockholders if there is a liquidation. Or, the security may be a debenture or note; that is, a debt instrument that has a higher priority than preferred stock. The conversion price of the convertible - the price that an investor can swap it for common stock - is at a premium to the market price. This can range from 5% to 20%. Some convertibles have reset provision. In other words, the conversion price falls as the stock price falls. This can set the stage for a death spiral. For example, the investor can short the stock, as the reset price falls, and then swap the convertibles at the reduced price. This can be extremely lucrative. Unfortunately, the stock price will get pummeled. It is for this reason that convertibles are often referred to as "toxic convertibles." True, some convertible deals have "no-short" provisions. But this is little comfort. You see, it is easy to set up offshore funds to handle the short-sales. It is virtually impossible to track.

To: LLCF who wrote (87507)	3/29/2001 12:47:47 PM
From: Box-By-The-Riviera™	Respond to of 436258

signalsmag.com What was once seen as the saving grace for a cash-starved company has come to be viewed instead as a disaster in the making. In fact, these offerings have earned the nickname "toxic converts." However, not all convertible stock (and debt) offerings are the same: There are those done by "quality companies and those done by desperate companies," according to BancBoston Robertson Stephens' Champsi. In the former, the conversion price is fixed. In the latter, the conversion price is variable; thus, the investor can benefit when the stock price goes down. She added that toxic converts are the financing of last resort, structured to bail out desperate firms. "Companies in the 'nano-cap' range will go to any lengths to survive."

To: LLCF who wrote (87507)	3/29/2001 12:50:05 PM
From: LLCF	Read Replies (1) \| Respond to of 436258

Hmmm, looking now, the convert isn't allowed till maturity one year from today. Indeed, in the wrong hands this could turn toxic, but it isn't one of those "shyster" deals I've seen in biotech. daK

To: LLCF who wrote (87507)	3/29/2001 12:52:54 PM
From: pater tenebrarum	Respond to of 436258

well, as far as i know the convert is simply treated as part of the equity capital. i don't think it's particularly toxic...i suppose you've read the other recent posts on the TVX thread? opinions on this apparently differ greatly. anyway, let's keep exchanging whatever new information turns up...i'm frankly baffled, since i know Gabelli is normally 'hands-on', i.e. he's usually actively trying to realize unrecognized asset values. and yet, the stock has cratered ever since he bought in.