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Strategies & Market Trends : Roger's 1998 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: put2rich who wrote (12086)	7/28/1998 7:31:00 PM
From: dumbmoney	Read Replies (1) \| Respond to of 18691

Anyone have the good fortune to be short PPH? It's a floorless convertible stock which has declined spectacularly (today it fell from 4 to 2!) The latest bad news is a delay in filing the 10K and S&P creditwatch. But the really bad thing now is the incredible dilution that can result from conversions at a low stock price. As of June 11 there was $43 million worth of convertible outstanding, which today* could convert into more than 22 million shares. This is more than twice as many shares currently outstanding (!!!!) [ *Conversions are limited to 20% per month. The clock started in April, so by my reckoning the preferred should be 100% convertible on Aug. 1 ] The conversion price is 95% of the lowest trading price of the common stock for the 22 trading days immediately preceding the conversion date. Yikes!