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

To: Roger A. Babb who wrote (1348)	12/19/2001 9:57:17 PM
From: Zeev Hed	Respond to of 1438

Roger, I made a major effort trying to decipher CPN's balance sheet, impossible for me, so i am not following that one.... Zeev

To: Roger A. Babb who wrote (1348)	12/19/2001 11:27:41 PM
From: Rajiv	Read Replies (2) \| Respond to of 1438

There is no put option for this new 4% CPN convertible. The put option is for the earlier zero-coupon convertible. Regards, Rajiv

To: Roger A. Babb who wrote (1348)	12/20/2001 11:13:44 AM
From: Hawkmoon	Respond to of 1438

delete

To: Roger A. Babb who wrote (1348)	12/20/2001 11:34:34 AM
From: Hawkmoon	Read Replies (1) \| Respond to of 1438

Didn't have time to revise my post about CPN but I had failed to realize they had obtained a premium on those debentures, rather than offering them at a discount. So thus the floor on the stock should be around $18/share once tax loss selling has finished, which should combine with the previous two $18/share support levels that were penetrated when Moody's downgraded their debt. So now there should be some good upside on the stock, potentially to the $25/share range, where as you state, they probably would short against an eventual conversion of the debentures. This deal was much better (given the circumstances) for CPN than I first imagined. I was expecting a 20-25% discount. Hawk