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Strategies & Market Trends : Shorting stocks: Broken stocks - Analysis -- Ignore unavailable to you. Want to Upgrade?

To: drakes353 who wrote (1015)	4/30/1998 10:25:00 AM
From: Q.	Read Replies (1) \| Respond to of 2506

For those following BASEA, the former defense contractor that now sells record-keeping software to the pharmaceutical industry, and which has a discounted convert deal: I called the CEO, and was told that very few of the convertible preferreds have flipped yet. There were 19,000 shares of preferred sold for $1k each, and only 500 of these have been converted into common. The S-3 registration was deemed effective back in February. I called because the stock took a beating on high volume, beginning in February, and I was concerned that maybe all the flipping is done and over with. But now I know it has hardly begun. So I'll sit tight with my short position. FWIW, the market cap is $40 M now, and float is $23 M, so the $19 M of convertibles waiting to flip represents a whopping 47% of shares outstanding and 80% of float. Conversion terms are a 0% discount based on the lowest 2 days price out of any 20 days. The S-3 can be found at sec.gov