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Technology Stocks : INPR - Inprise to Borland (BORL) -- Ignore unavailable to you. Want to Upgrade?

To: Kashish King who wrote (2544)	4/4/1999 8:35:00 AM
From: Cube	Read Replies (2) \| Respond to of 5102

Just got back from a 10 day trip to Asia, and now that I'm home I thought I would collapse into my chair, log on to SI and see what I missed on INPR. HOLY COW! I've read every post since I left, and I have to say I agree with most every post. I don't have much to add except for an explanation of the Series B convertible shares. They are commonly know as "Floorless debt instruments." I've posted about them before on this thread as a serious danger to a company, and here is the reason why. Rod correctly points out that there is a linear relationship between the price below 6 and the number of shares that the company is forced to print in order to "protect" the holders of the floorless instruments. The danger is that the holders of the floorless certificates are free to short them AT ANY PRICE. They are not bound by the uptick rule, marginability requirements, or price above 5 dollars like most people. The can literally short the stock to zero, because every point it drops, brings them more shares that they get for free and then short them which drives the price lower which brings them more shares...........etc. For anyone interested in these, type the word "floorless" into the SI search box, and it will bring you to a thread that does nothing but talk about these devastating debt instruments. Very complicated reading, but well worth it. Cube