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Strategies & Market Trends : Floorless Preferred Stock/Debenture -- Ignore unavailable to you. Want to Upgrade?

To: Zeev Hed who wrote (179)	11/22/1998 5:30:00 PM
From: Ed Ajootian	Respond to of 1438

Z-Man, Wondering if you or anyone else here has ever looked at Pease Oil & Gas (WPOG). They looked to be in a classic floorless preferred death spiral but recently I've seen some bullish comments on the Yahoo board and I'm trying to figure out how this situation could possibly get salvaged. There was some huge volume in the stock last week and I understand it was mostly buying, even though the price barely budged. I took a small position in this stock @ just under $3 and am now looking at a huge loss. If I thought this puppy had a fighting chance I'd average down. Although I still disagree with you re: the impact of HEC's floorless, I highly respect your opinions on floorless securities as they apply to the microcap companies.

To: Zeev Hed who wrote (179)	11/23/1998 6:17:00 AM
From: Ditchdigger	Respond to of 1438

Hello Zev,this is old,and not floorless(it is a Reg S though),but it is the finest example of an 8-K filing describing the terms of a convertible, even showing the documents of the Debenture/warrant for a BB I've ever seen.. Wouldn't it be great if all companies disclosed this fully,and completely, the terms of these sneaky critters<g> edgar-online.com

To: Zeev Hed who wrote (179)	11/26/1998 1:49:00 AM
From: George Dawson	Read Replies (1) \| Respond to of 1438

Zeev, et al: In my quest to be a better investor should I be fleeing from any company that has issued convertible debentures as well as floorless covertible preferred stock? It seems to me that the shorting mechanism is still in effect. That is you can deliver either the preferred certificates or the debenture certificates to short against. The only difference being that with the debenture, you need enough leverage to drive the stock price down and then cover with inexpensive shares accumulated at market price rather than with inexpensive conversion shares (assuming the conversion on the debenture is fixed at a premium to the market price). All this happens while collecting interest until maturity. Does this sound accurate to you? George D.