Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Knighty Tin who wrote (91319)	6/23/2001 11:45:21 AM
From: RumbleFish	Read Replies (1) \| Respond to of 132070

<<. But the real key is that they phrase the rights offering as though shareholders are getting a great chance to buy the stock for less than the market price. I just wish they'd have to print in bold print the net COST of the offering and state that the only benefit you get is that you would lose even more if you didn't take part in the offering. >> Michael, it seems to me that what CVT was(is) doing was even worse. They wanted you to pay more than market price. After all as a CEF the shares sold at a discount. These guys wanted you to pay net asset value, or possible more--if the CEF shares had been selling at a premium: "LOS ANGELES, April 19 /PRNewswire/ -- TCW Convertible Securities Fund, Inc. (NYSE: CVT - news; ``CVT'') announced today that it intends to file with the Securities and Exchange Commission a Registration statement with respect to a proposed subscription offer that will entitle each shareholder to purchase one additional share of Common Stock, $.01 par value, of CVT for every four shares held on June 22, 2001. The expected per share subscription price will be the greater of net asset value or 90% of the market price." IOW, you could buy new shares at net asset value which would immediately be trading on the market at a discount.