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

To: Zeev Hed who wrote (200)	12/5/1998 11:42:00 PM
From: LTK007	Read Replies (1) \| Respond to of 1438

ZEEV,you mean that now that I am learning about identifying toxicfloorless convertibles--I now must watch out for toothlessfloorless and leakyfloorless:) wow! challenging stuff---I now own a stock that I bought AFTER they got "raped" by a convertible deal that was so complex that I think the mind that wrote up the deal had to be an evil genius--and I doubt very much that the company signing the deal realized they were being swindled---the converts are now gone,and I bought 20,000 shares of it at 50cents--this is a company of super egghead scientists,when confronted with these wheeler dealers,they were clueless--BTW,this company would have gone under but were saved by Drug Company money coming to the rescue and then going into a merger-- but it was then I realized,just what sharks this wheeler dealers are-- could this problem simply be resolved by the SEC simply outlawing floorless(toxic,leaky,or toothless) convertibles--I believe this would be a marvelous action on the part of the SEC.Good Luck,Max

To: Zeev Hed who wrote (200)	12/5/1998 11:51:00 PM
From: zonkie	Read Replies (1) \| Respond to of 1438

Zeev, are these debentures always filed on a form S-3? Aren't they sometimes filed on S-8's and other forms? Tasa filed this ( edgar-online.com ) on a form 13-D and Bob Davis examined it and said it looked like it wasn't a bad deal for the company. I have become very leery of any form of a private placement as I know what they can do to a company even when the company thinks they are doing something in the best interests of the shareholders. If you aren't too busy would you mind skimming over the above listed URL and tell me if you see anything that you think would be a red flag. I may buy some TASA stock but as of now I am still undecided. I saw one debenture in a company that I was thinking of buying stock in where the people loaning the company money ended up with 72% of the outstanding shares after 1 year and had driven the price from over $7 to below 50¢ if I remember right. Isn't it true that sometimes it is a good time to buy after all of the preferred has been redeemed? I mean after they have shorted it down as far as they can and cover their shorts doesn't the stock most generally rise in price till the next time? Thanks. z.............