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Re: acspark post# 77

Friday, 05/07/2010 11:07:10 AM

Friday, May 07, 2010 11:07:10 AM

Post# of 146
It was a good company, but it loaded its debt with poison convertibles. When a vulture default occurs, stock is issued to pay the debt. Expect a large increase in the number of shares outstanding to make them whole. They probably won't go BK, but the dilution will hurt many investors who didn't read the fine print. It is always near the bottom of the 10Q.