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Strategies & Market Trends : Due Diligence - How to Investigate a Stock -- Ignore unavailable to you. Want to Upgrade?

To: Anaxagoras who wrote (325)	4/26/1999 10:55:00 AM
From: Zeev Hed	Respond to of 752

Anaxagoras, first a warning, I know absolutely nothing about RRRR's business and prospects nor its management. The 120% premium for redemption, while not great is "OK" when a company is in financial trouble trying to stay afloat. HEC paid 40% premium to get rid of their floorless. It sure is a warning signal when you see a floorless in place in any company. But the removal of a floorless remove some of incentive to create a death spiral. I was asked to look at this one by a poster shorting the issue assuming that the floorless feature will assure eventual demise. My response is just saying that it may no longer be so simple. I am happy to see small companies fighting back the floorless bandits, however. Good luck to you guys. Zeev