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Microcap & Penny Stocks : PKGP (Packaging Plus) -- Ignore unavailable to you. Want to Upgrade?


To: dexx who wrote (1357)5/13/1998 7:56:00 PM
From: sweez  Read Replies (2) | Respond to of 4783
 
It's just like going to a loan shark but instead of you having to pay
it back your friends and family have to. Why would anyone go to
a loan shark?? --- Can't get the money anywhere else & You don't give
a Dam about your friends and Family IMHO sweez



To: dexx who wrote (1357)5/13/1998 8:00:00 PM
From: Richard Mazzarella  Read Replies (1) | Respond to of 4783
 
dexx, that may be the best scenario. The worst is that the debenture holders short the stock (sell what they borrowed). That drives the price down. They then use the cash they got for the short to do the conversion at lower cost, they then sell what they converted to drive the price down even more, convert more, sell more, then when the stock is close to zero cover. If they happen to get the company to fail, they don't have to cover or pay capital gains tax. That's what we call floorless. Neat work if you can get it. No wonder it's illegal in the US.



To: dexx who wrote (1357)5/14/1998 9:19:00 AM
From: John S. Baker  Respond to of 4783
 
Correct. These are sometimes called "floorless convertibles" or even "death warrants". There is a thread which discusses these on an ongoing basis. This URL will get you into the middle of that thread. Back out of it to get to the beginning:


Message 4453065


It will be interesting to see if PKGP has been or is able to deal with these things.