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Microcap & Penny Stocks : Rentech(RTK) - gas-to-liquids and cleaner fuel -- Ignore unavailable to you. Want to Upgrade?

To: melinda abplanalp who wrote (6626)	8/5/1998 10:42:00 AM
From: John S. Baker	Read Replies (2) \| Respond to of 14347

Floorless convertibles ... aka "death warrants" Look at the most recent Proxy (SEC Form 14), which usually lists the capital structure of the company. Look for any form of convertible financing in which the exact conversion rate is not fixed, ie it will say something like "convertible at the average closing price for three days before conversion." Thus, the lower the stock goes ... or can be driven ... the better the conversion rate for the holders fo the convertible securities. Some of these holders have been accused (properly accused, IMHO) of selling short stock knowing that they will be able to replace it cheaper upon conversion. It is not a pretty sight. If memory serves, TokyoMex stated some months ago that he had spoken with the holder of RNTK's floorless convertibles and was comfortable that they were in steady hands. Hope this very brief summary helps. JSb.