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Technology Stocks : Advanced Radio Telecom (ARTT) -- Ignore unavailable to you. Want to Upgrade?

To: transmission who wrote (502)	3/24/1999 2:30:00 AM
From: Bernard Levy	Read Replies (2) \| Respond to of 1176

Hi transmission: My apologies for butting in, but a floorless convert is a preferred convertible stock which can be converted at face value into common shares independently of the price level of the common. Say, the preferred stock would have a face value of $100M. If ARTT ever trades at $2 per share like it did a few months ago, the preferred would convert into 50 million shares, so that the current stockholders would suffer massive dilution. Generally, companies do not resort to floorless convertibles unless they are desperate, or their management is crooked or incompetent. I forgot to mention that floorless convertibles are to shorts what blood in the water is to sharks. Given Henry Hirsch's experience, I am skeptical that he would ever go for floorless converts. Best regards, Bernard Levy