Ascent Solar Technologies Inc (ASTI)

[Peddler22]

Some have wondered why an investor would by preferred shares at 5 times the current market price, in this case .004 is the conversion price. After all they could buy 5 times the amount of shares for their money right now there are many reasons. They can usually take up to 5 years to convert and .004 will look great if the stock is at a dollar or two however by buying preferred at a premium helps the stock price (which they may already be invested in) and if the company goes bankrupt they are the first in line to get back the original investment in a liquidation scenario and Asti has plenty of hard assets were if they bought common stock at the low market price even though they would have much more upside potential they would probably loose all of it iif the company folds This alone makes the premium a good hedge and still offers huge potential gains plus there are many tax benefits as the position can be either equity or debt depending on how it is logged. No matter how you look at it though it helps the stock price in the short term and may help the company turn the corner without borrowing. In addition most preferred shares that convert are bought back by the company who has benefited thus making dilution a non issue. GO ASTI!!!!!