Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Zeev Hed who wrote (239)	1/21/1999 1:13:00 AM
From: George Dawson	Respond to of 1438

Zeev et al, I am happy to report that the shareholders of a stock I reported on here earlier (myself included) may have survived a floorless convertible. My initial reference to our experience with Ancor Communications was reported in the following link: Message 5915251 At that time the stock price was 1 9/32. Today the stock closed at 8 1/4. Business prospects appear to be good. The short position is decreasing toward baseline (although this month's will be a key data point), and the conversion is essentially complete. Although it is not possible to know many critical details - it appears to me that there might be a critical balance between the conversion formula and the maximum allowable conversion per month that may have prevented excessive dilution (final shares outstanding will probably be 25M) and sub $1.00 share prices (although the 52 week low ranges were very demoralizing). I invite your comments on this balance (conversion formula vs. maximum allowed conversion per month) as a form of high risk financing for a company who needs to raise capital. Thanks, George D.

To: Zeev Hed who wrote (239)	1/27/1999 9:30:00 AM
From: Greg Burton	Read Replies (1) \| Respond to of 1438

Zeev: A question concerning a new twist on a floorless, Vitafort corporation (VRFT) This turkey was driven down from several dollars to as low as $0.09 by convertible bandits when the convertibles were redeemed by a white knight and the stock has since rebounded to the $0.30 - $0.40 level. VRFT has a small float about 7MM and much of that is held by the white knight and others believed to be holding tight. Rumors have been accelerating that purchasers of stock on this rebound have not, repeat not, been able to obtain delivery on hundreds of thousands of shares for as long as 90 days. Assume the bandits gave up all of their stock when they relinquished their converts and they are now literally having trouble finding shares, how long can they keep the ball in the air before the brokerage house itself has to go into the market to cover? Is there any net resource to determine short interest, this is only a bulletin board stock? What would happen if owners of hundreds of thousands of shares were to simultaneously demand physical delivery of their certificates? I would appreciate any thoughts you have time to share. By the way, please assume the facts as I have outlined them. Greg