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Strategies & Market Trends : Death Spiral Preferred Thread -- Ignore unavailable to you. Want to Upgrade?

To: eric deaver who wrote (16)	9/22/1998 10:29:00 PM
From: Zeev Hed	Read Replies (1) \| Respond to of 47

eric, when these guys convert, they get not only their 9% accrued interest (dividend) but another 17.5% discount on the stock. I doubt they convert to hold the stock. I would presume that they are the one shorting on bounces (first to 2, then to the 1.5 and now probably to the 1.25 range), then converting to cover their short (delivering stock against their short position). A very low risk situation and an immediate profit in excess of 25%. I do not think they convert to hold for a better price. Zeev