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

To: Zeev Hed who wrote (253)	2/10/1999 10:34:00 PM
From: LLCF	Read Replies (1) \| Respond to of 1438

I think it's fair to say, if not already assumed by all, a company with a floorless preferred had either been duped or panicked into the situation. This is not some acceptable security that turns out bad sometime! This security is proposed to the company by Bad Boys with lots of slick financial (derrivitives) savy, and who fully intend to steal as much of the company as they can... they are often accompanied by warrants for upside as well. Every one of these companies brought up on the thread have CFO's (if they even have one) and CEO's with egg on their faces IMO. There is never a justifiable reason to do one of these execept they DONT UNDERSTAND WHAT THEY ARE, and it would cost a million bucks to have a proper investment bank look at the deal... each and every one of these financial officers at these companies should be sued for entering into this contract on behalf of the shareholders. I do not make these statements without thought, this is basically the same thing that sly investment banks were selling to unwitting funds (and P&G, Gibson, etc) who had no clue what they were buying.... Procter and Gamble lost 100 million or so for the same reason, they didn't know! They just did the deal! Unreal... I recommend the book about Morgan Stanley called "F.I.A.S.C.O." as a good primmer. With Wall Street awash in cash bringing companies public like nuts, theres more to come no doubt. WATCH OUT DAK