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

To: Nazbuster who wrote (382)	4/25/1999 7:18:00 AM
From: RockyBalboa	Respond to of 1438

Many different scenarios may apply to RRRR now. One is that the convertible holder must trade carefully. So, he starts shorting some stock to reduce his $ exposure. I did mention the the conversion terms change after the half year period. However, the holders have enough time as they are free to sell after the recent registration of the shares. As long as RRRR trades at such lofty levels, in comparison to the cap price the holders do not gain anything from pushing down the price, because the number of shares won't increase until the $5ish cap is reached. So they would short the number of shares - in total, they can get upon conversion (+ the warrant). The Apollo deal is much more interesting. Apollo, if they do the deal should have a similar interest to secure their investment. If not, it is the floorless what remains.