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

To: ChrisJP who wrote (1368)	1/10/2002 11:21:55 PM
From: Zeev Hed	Read Replies (1) \| Respond to of 1438

Actually, it is a floored convertible with a forced conversion clause, namely, if the stock trades above $2.5/share for 45 consecutive days after June 26, 2002, the company may force conversion to stock. It is quite possible that in an appropriate environment, the stock will b "engineered" to get above $3 for that period in order to assure conversion (and a lengthy enough period for the converts to hedge their position at 5 times their cost, which is roughly $.5/share). Zeev