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Strategies & Market Trends
Death Spiral Preferred Thread

An SI Board Since August 1998

Posts	SubjectMarks	Bans
47	28	0

Emcee: Sir Auric Goldfinger	Type: Unmoderated

Introduction Compact

It has come to our attention that there are many good short opportunities in Companies that issue convertible preferred stock that has no floor in the conversion price (i.e. the number of shares that can be converted is essentially limitless since the holders get to convert at a discount to the common). Since any company that would agree to these terms is typically in a very weak negotiating position, these instruments typically present a great universe of short ideas that do not pass the smell test.

Examples of well-known death spiral preferred issues include Data Race (RACE), Able Telecom (ABTE) and IAT Multimedia (IATA). The Market Makers play this game and its now time for the members of SI to get their licks in as well. Post all new issues and interesting details of DSPs here. Load up!

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Reply	Message Preview	From	Recs	Posted
47	Toxic death spiral? siliconinvestor.com DAK	LLCF	-	7/25/2013
46	Moribund WAVC did loan shark financing: biz.yahoo.com TORONTO--(BUSINESS WIRE)	RockyBalboa	-	9/24/2001
45	So ISOMAN, they after you. Maybe they want to kidnap you and go after your mone	Taki	-	9/29/1999
44	"I can't believe he still thinks those preferreds are not floorless.&	J T	-	9/29/1999
43	some AOL member sent it to me. Basically said they knew where I lived and would	ISOMAN	-	9/29/1999
42	ISOMAN, I WOULD LIKE TO SEE THE E-MAIL OF THE DEATH THREAD, IF IT IS OKAY WITH	Taki	-	9/28/1999
41	I guess he is putting ads on internet sites and renting himself out. how would	ISOMAN	-	9/28/1999
40	" one of the lovely supporters" Gee I wonder who it could be?LOL si	J T	-	9/28/1999
39	First I get a death threat via email for pointing out the Floorless preferreds	ISOMAN	-	9/28/1999
38	David, companies are getting a little smarter, you find more and more situation	Zeev Hed	-	5/17/1999
37	Hi Zeev, Just signed up for that company sleuth to try it out yesterday. Don&#	dealmakr	-	5/17/1999
36	I hear ya, another GNET! Terms are late, but "soon my little pretty!"	Sir Auric Goldfinger	-	5/17/1999
35	Auric, where are the details, I see none on Yahoo. Just be careful with those i	Zeev Hed	-	5/17/1999
34	BHUB aka SLEU aka ILE GR (Munich neurer market) aka CHCK just did a BIG death s	Sir Auric Goldfinger	-	5/17/1999
33	ASTN: a wind bag death spiral worth looking at: #reply-9294076 Plenty 'o bo	Sir Auric Goldfinger	-	5/3/1999
32	Any comments on the ENML 6% converts that just got announced?	Sir Auric Goldfinger	-	12/21/1998
31	Have posted on the floorless thread this same request: anyone with info on OE	jerryriti	-	12/13/1998
30	HBCO...it appears as this fits the bill just right..	american dreamer	-	10/12/1998
29	Another great thread. Do you have any comments on this ... Message 5966289	Dave K	-	10/9/1998
28	George, Unwinding is nearly painless and, if done properly, doesn't even h	Bruce A. Thompson	-	10/8/1998
27	To all: I would like thoughts on unwinding the short against the box position	George Dawson	-	10/4/1998
26	So - what last hour scalping plays does anyone suggest? Shorted REXI today @ 9	Prof	-	10/2/1998
25	<i>Conversion rate is fixed at a 20% premium to the current market price	dumbmoney	-	10/1/1998
24	I am trying to fully understand the implications of these toxic instruments. I	jerryriti	-	9/29/1998
23	Space, no I am not in TTRIF I was in for a very short run (tried for a golden h	Zeev Hed	-	9/23/1998

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