Scottish Re Group Ltd (fka SKRRF)

[h_man_investor]

MM and C have 6 of the 11 Board seats. They are not there to look out for the common shareholder but for their investment.

As it stands, assets are greater than liabilities by +$716,850. They have a liquidity preference of a current $748,100 (and growing) until a mandatory convert date of 5/15/16.

Lets say that book value grows from $716,850 to $1,000,000 between now and 5/15/16- a 6.1% growth in the portfolio which is possible under the best scenario ($50mm a quarter in earnings). Since the liquidation preference grows by 7.25% per year it will be $991,000.

They can either sell the company lets say for book value and get $991,000. The preferred gets $9,000 and the sh/h get $0.

Or you can convert your stock, the preferred get seniority of $120,000 and you get shares with a book value of $604,000. Which one would you choose?

It all boils down to whether or not the company can get sold. And that boils down to financing.

I'm not sure if I mentioned this before, but mgmt has indicated to me that although they may be allowed to pay a dividend on the preferred this quarter, it is there intent not to in order to conserve cash.

Bwana12, I respect your opinion but to date you have given no details to how/why you think M and CC will pay anything to the common or preferred sh/h. Please enlighten me!