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Strategies & Market Trends : Roger's 1997 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: AJ Berger who wrote (7086)	11/16/1997 5:50:00 PM
From: Pancho Villa	Read Replies (1) \| Respond to of 9285

TO AJB and ALL: on CDRD, I am curious to know why these rich guys invested into what appears to be such a bad investment idea. I wonder if what they are doing is some kind of tax shelter scheme (the tax loopholes involving shorting are gone so what could it be?). Perhaps some of the people at Rogers with more knowledge in this area could clarify. To you AJB I thank for your timely message. I was ready to pull the trigger on this puppy if I found the shares. Now, I will wait for some more input. Pancho

To: AJ Berger who wrote (7086)	11/16/1997 11:41:00 PM
From: Dale Baker	Read Replies (1) \| Respond to of 9285

Some of the rich folks must not be that patient. This is the second time that CDRD tried to get consent from the convertible preferred holders to roll over their notes into new preferred. First time they couldn't get 100% so they had to try again. This time, they lower the target to 60% then announce on Nov. 12 that they have 50% in hand (why announce 50%, to coax the others, scare shorts, keep up a brave face or what?). No news since the Friday deadline to indicate they convinced the last 10% (and even if 60% agree, the other 40% could presumably still convert because they didn't agree to Series C over Series B). Don't forget, if they can convert the Series B to Series C then they are planning a 2 million share secondary offering very soon. More dilution whichever way you turn. It could be that CDRD will chug along in the low 20's for a year. Or soon, some of the convertible holders will dump their new stock (they haven't agreed not to) and the other rich folks will see their long-term nifty investment drop by 20 - 30% with the tax year-end coming up. Personally I think CDRD will see the low teens before the high 20's. That's just my guess, backed up by a few bucks. Rich folks aren't always smart with their money. Thanks for your input. But something is clearly not right here, business model aside.