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Strategies & Market Trends : YEEHAW CANDIDATES -- Ignore unavailable to you. Want to Upgrade?

To: Sergio H who wrote (11223)	8/27/2005 6:41:41 PM
From: Ken W	Respond to of 23958

Sergio Yep, they are excersising on the perferred Series A's. Basically, it is a divy to the perferred holders..they bought the perferred at 10.00 per share and can elect to convert to 13 common or take the option divy. I like that they are taking the option rather than convert to common. Although at the present price they would be just about break even on the common if they wanted to sell. By excersising at .50, the company gets some cash and the resulting common has some value to the holder. Those that are listed are the only ones that hold perferred shares. Anderson is rapidly moving toward 20% ownership of the companies shares along with being the financier thru the family trust...he recently increased their credit to 1.5mm with a reduced interest rate. Obviously he wants the company to survive or he would not continue to support them. Ken