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Technology Stocks : The New QLogic (ANCR) -- Ignore unavailable to you. Want to Upgrade?

To: Neil S who wrote (18373)	10/4/1998 4:06:00 PM
From: Eleder2020	Respond to of 29386

>>Someone mentioned to me the other day that a new market phenomenon has started to develop, where [non-participating Reg S/D] short sellers are targeting companies that have done this type of financing and hope to benefit from the "Convertible Preferred Effect". I see SI now has several threads dedicated to this subject: <<< Patrick, My hypothetical question would be if RegS or D holders in any of these companies mentioned above shorted additional shares of stock on the open market knowing they would massively short their converted shares, knowing that would adversely affect the price of a stock to aide their open market short would that not be considered stock manipulation and therefore illegal?Would a Reg s or D holder suggesting to a friend or relative to short on the open market knowing that they would benefit from their shorting the converted shares be manipulation.Not suggesting that this happens. Just raising a point to understand all the possible implications of RegS/D financing. Ed

To: Neil S who wrote (18373)	10/4/1998 6:14:00 PM
From: George Dawson	Read Replies (1) \| Respond to of 29386

Neal, I just read all of the posts on both the Death Spiral Preferred (DSP) and Floorless Preferred Stock/Debenture (FPSD)threads. For information content I would recommend the latter, especially posts 3, 11, 14, 17, and 83. Interestingly if you use the new SI feature of searching only the Ancor thread for "conversion" you will see that we have 68 posts on the topic. The biggest highlights: 1. Several posters view the issuance of a convertible preferred as an indicator for making money on the short side - that is buy short if you see one issued and you can find shares for greater than $5. 2. You should not be long in a stock with a convertible preferred (according to some posters). A quote from the FPSD thread: "A stock holder staying long in a company that issued a floorless has no business investing in anything but a mutual fund." My mutual funds aren't doing so hot these days either. George D.