Saturday, August 15, 2009 9:16:06 AM
Actually it was Egan who sent the email ...
... in an unprofessional way , exhibiting someone's personal email address instead of mailing it 'To' himself and BCC'ing the shareholder email list.
Convertible preferred, preferred in Death Spiral Toxic Financing everywhere.
Everyone has to vote on this and to increase the authorized number of Convertible Preferred shares from 5,000,000 to 20,000,000. 20,000,000, that's a HUGE number, TIV must plan on needing to try and sell conv. pref. shares to raise money for a long long time.
That could turn into a LOT of outstanding shares over time as the 'preferred' folks convert lol. Everybody be sure and read the details in the proxy when it arrives, and understand what it's telling you.
I've seen Convertible Preferred with a fixed dollar value attached to each share, for example $1000 per Conv. Pref. share. At a PPS of a buck, the holder can convert into 1000 shares. At a PPS of a dime, the holder can convert each conv. pref. share into 10,000 shares.
Often the conversion features a discount which the holder can take advantage of, something like being able to convert at a 90% discount to the lowest closing price in the 30 days preceding the conversion date. In the event of a little short-lived run up in price like from $1 to $2, the holder can look back into a 30-day window, convert at that low closing price of $1, or perhaps even at 90% of that or $0.90, and immediately dump the shares (the new shares that TIV instantaneously 'virtually' prints for the holder) onto the open market at $2. The holder makes 100% and suppresses or even tanks the share price by dumping the shares, and the outstanding share count immediately goes up, further diluting the value of each share held by the hopeful Joe Investor.
Wash, rinse, repeat.
Anyway, it will be interesting to see exactly how TIV does it and how much regular shareholders will or will not get shafted. Maybe TIV will utilize a 'kinder gentler' Convertible Preferred scenario.
jonesie
... in an unprofessional way , exhibiting someone's personal email address instead of mailing it 'To' himself and BCC'ing the shareholder email list.
Convertible preferred, preferred in Death Spiral Toxic Financing everywhere.
Everyone has to vote on this and to increase the authorized number of Convertible Preferred shares from 5,000,000 to 20,000,000. 20,000,000, that's a HUGE number, TIV must plan on needing to try and sell conv. pref. shares to raise money for a long long time.
That could turn into a LOT of outstanding shares over time as the 'preferred' folks convert lol. Everybody be sure and read the details in the proxy when it arrives, and understand what it's telling you.
I've seen Convertible Preferred with a fixed dollar value attached to each share, for example $1000 per Conv. Pref. share. At a PPS of a buck, the holder can convert into 1000 shares. At a PPS of a dime, the holder can convert each conv. pref. share into 10,000 shares.
Often the conversion features a discount which the holder can take advantage of, something like being able to convert at a 90% discount to the lowest closing price in the 30 days preceding the conversion date. In the event of a little short-lived run up in price like from $1 to $2, the holder can look back into a 30-day window, convert at that low closing price of $1, or perhaps even at 90% of that or $0.90, and immediately dump the shares (the new shares that TIV instantaneously 'virtually' prints for the holder) onto the open market at $2. The holder makes 100% and suppresses or even tanks the share price by dumping the shares, and the outstanding share count immediately goes up, further diluting the value of each share held by the hopeful Joe Investor.
Wash, rinse, repeat.
Anyway, it will be interesting to see exactly how TIV does it and how much regular shareholders will or will not get shafted. Maybe TIV will utilize a 'kinder gentler' Convertible Preferred scenario.
jonesie
Yorkville / Cornell Tracking Board #board-9964
"I can think of no more valuable commodity than information"
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