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


To: RockyBalboa who wrote (433)6/4/1999 7:30:00 PM
From: TH  Read Replies (2) | Respond to of 1438
 
InfoStream

Thanks, but I still don't understand from your post how this investor makes any money if he is not selling shares short.

Where is the cash for this investor?

The total shares short never even gets close to the level they would need to make real money. The short interest has actually gone down a little bit the last couple of months.

I just don't get it, and I must assume that they are long. Why would they continue to provide cash for a new series of preferred when the stock is at a buck and half? The short profit is just not there and they would be stuck with 80% of their original investment in stock that would be worth zero.

They must be long and believe in the company or I am missing something. Stranger things have happened.

Good Luck

Thurston