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

To: dumbmoney who wrote (12087)	7/29/1998 1:22:00 PM
From: Marconi	Read Replies (1) \| Respond to of 18691

Hello DumbMoney: << The conversion price is 95% of the lowest trading price of the common stock for the 22 trading days immediately preceding the conversion date>> That's not closing price, that is lowest trade in the last month!!! This is the worst formula I have heard. And the extent of convertible: <<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 ]>> is phenomenal dilution, too. I was unaware of PPH, but without further information than this, the stock price should be in dire straits. I would look for liquidation value and compare that to the effects of this financing its course. Best regards, m