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Technology Stocks : John, Mike & Tom's Wild World of Stocks -- Ignore unavailable to you. Want to Upgrade?

To: John Pitera who wrote (2640)	12/18/2001 9:39:39 PM
From: Logain Ablar	Respond to of 2850

John: No a floorless is one of those debt offerings where the lender can convert and is able to reprice and obtain more shares if the stock drops. They have the incentive to pump the stock up and then short it. forces the stock to drop. Difficult to do (force hard financing terms if a company has good financials). I think (so its just a guess) the company won't be forced into this because they have an agreement with cpq. Normally a company wouldn't agree to this type of financing unless they were on the ropes. The stock gets pumped up and then the lenders make a killing by shorting. The company is in the type of shape were there is no good news coming out for a while. I've seen companies like MSTR (stock ran from 20 to 60 while the deal was being done and then the stock cratered to around $3, this was after it went from like 300 to 20), VLNC, ANCR, WSTL do these. I see it closed @ 85. I had 80 as resistance as well. Hey only 5 cents and I'm even. A few scenarios. 1) Selling was just overdone. 2) New equity financing done TBA soon. 3) Positive sales news. 4) Potential buyout. 5) New debt financing done TBA soon. You need confirmation on the TA but one good day out of the next two would do it.