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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Knighty Tin who wrote (52942)	3/22/1999 2:13:00 PM
From: Mama Bear	Read Replies (1) \| Respond to of 132070

Michael, I have a rule to avoid going long companies that use junk equity financing. I assume you're familiar with the phrase 'death spiral convertible'? I'll admit my info on ANCR is out of date, and the chart looks like the conversion may have been completed. But those discount convertibles are the corporate equivalent of using a loan shark or using credit cards to finance stock trading. I'm sure that one day I will see a company that's used that kind of financing succeed, but it's usually a better bet that they fail. My question when someone says 'they had to use it' is 'where were the VC's?'. Barb