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Biotech / Medical : Trinity Biotech (TRIBY) -- Ignore unavailable to you. Want to Upgrade?

To: AgAuUSA who wrote (9777)	7/20/1998 8:14:00 PM
From: Ray	Respond to of 14328

Well it is a problem in that it increases the float. If conversion has been going on at these low prices -- which is what you'd expect -- then potentially there could be 1.5 million shares added to the float. That's based on $3 million in convertibles having been sold. I'm still long, but disappointed that earnings will have to be even better or we'll need HIV approval to get the stock going strongly in the right direction. Ray

To: AgAuUSA who wrote (9777)	7/20/1998 8:20:00 PM
From: dowman	Read Replies (4) \| Respond to of 14328

Let me do the work you refuse to think about. Here are the "rights" of the holders. If the 5 day closing bid is 2 I can convert into stock at a price to me of $1.80 if within 120 days. Taking the same 2 dollar average price after 181 days gives me a conversion price of $1.65. Now following the bouncing ball and repeat after me... this is selling discounted stock, which is guaranteed to be converted because it is a riskless transaction to the holder...The holder can buy stock under the market, no matter what the price might be on the open market. Real companies sell convertibles that might be converted if the underlying price goes up in value. Here you are guaranteed dilution even if the stock goes down, and an overhang of stock for sale. If the future is so bright why is the company willing to "give" the stock away?