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Microcap & Penny Stocks : Synergy Brands-SYBR (was KRAN) -- Ignore unavailable to you. Want to Upgrade?

To: buzzcut who wrote (695)	3/26/1998 9:45:00 AM
From: buzzcut	Read Replies (1) \| Respond to of 1026

Anyone have any comment on the follwing item from the yahoo board??? I'm emailing the company to see if they have any explanation. ......... There is an excellent article in the latest issue of "Bloomberg Personal" magazine on "death-spiral" convertibles (also known as toxic convertibles). KRAN recently issued $700,000 of these issues than can be converted at 70% of market price regardless of how low the market price goes. bloomberg.com@@yGDJpQYAzYeepWbg/mag/mw_9804_stock.html A more in depth article on these "black-hole" securities can be found in Barrons Jan 5, 1997 issue ("Pirates Ploy"). In 1996, KRAN management claimed that they were on the verge of bankruptcy and had no choice but to raise cash with these death-spiral convertibles. But if the cigar/squid businesses are doing so well, what is their excuse now?? The last batch of death-spiral convertibles was issued in at the end of January. Typically, there is a 45 to 60 day waiting period before the toxic converts can be exercised. So you will probably see the volume on KRAN increase significantly next month when the holders of the toxic converts can start massive short selling of KRAN stock to drive down the price. Then they can exercise at 70% of the driven down price.