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Strategies & Market Trends : Roger's 1998 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: Don Westermeyer who wrote (17242)	1/28/1999 11:18:00 AM
From: Oeconomicus	Read Replies (2) \| Respond to of 18691

No, I wouldn't think so either. Floorless deals are for truly desperate companies lacking financial sense (and probably a few whose management is in on the scam). Personally, I can't imagine the thought process that went into this decision. It's bad enough when management and the board tossed prudence out the window last year, funding operating losses with debt, but to do it again when they could raise the same cash from issuance of only 4 million shares on top of the more than 150 million outstanding ... Hubris, greed, financial irresponsibility. JMO, of course. Bob PS: OTOH, if the current note holders were in a position to declare a default, could they force the company to sell them a floorless? Hmm. I doubt it. Too much legal risk I'd think. Never mind.