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

To: drakes353 who wrote (1017)	4/30/1998 3:48:00 PM
From: Q.	Respond to of 2506

BASEA's CEO didn't offer any explanation as to why nobody was converting, but he was certainly well informed, with all the numbers at the tip of his tongue, to answer my questions about the preferred and the conversions, so he has certainly been thinking about it. I neglected to ask him whether there was any standstill agreement in place, or any other reason he knew of that nobody was converting. Still, I would speculate the increase in short interest from March to April might be due to convertible holders selling during the 20 days before conversion. re. the deal, the co. paid a fee of maybe 7%, plus 8% a year dividend. With a 0% discount, maybe the preferred holders hope to make the better part of their money off those, rather than from killing the stock. Just the same, they've got to convert eventually, and the dilution will be big.