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Strategies & Market Trends : Roger's 1998 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: Ploni who wrote (1005)	1/20/1998 10:25:00 AM
From: vegetarian	Read Replies (2) \| Respond to of 18691

Re: CFON, on one hand they say any outstanding preferred will be automatically converted to common by Dec 1999, implying that the company wants to convert them into common thus avoiding the obligation to pay 5%, on the other hand they have put this limit of 1.06M shares to be converted with the additional clause that any excess shares beyond this will need an approval of stockholders or permission from NASDAQ (I think they would do this under some sort of hardship clause if the shareholders don't approve it). IMO, it may not be too difficult for them to get approval for issuing excess shares if they can do this convertible deal. Anyone knows what 19.99% limitation they are talking about, is that a default SEC ruling that applies to all such convertible deals?