GNCC Capital Inc (GNCP)

[unbiased investor]

Well, their preferred shares are valued at $1 per share with a .06 dividend. They can convert those preferred shares to common shares at 50% of, if I remember correctly the average of the lowest 10 trading days preceding the conversion. But, why do that if they can keep their shares and receive a .06 dividend that no one holding common shares gets. So, you can't really figure common share price based on their preferred shares. So as of right now, they would be receiving about $240,000 per year to hold their preferred shares and not convert. This is what was so positive about how they restructured the debt. It saves common shares and dilutive effects of current shareholders. They can't convert for a year anyways so nothing to worry about there. Plus, as long as they were receiving 6 cent dividends, they will more than likely not convert at that point either unless the stock price is so high that it benefits them greatly. Meaning that there is less volatility here so they would be able to sell out their full position without dropping the price so drastically to hurt themselves. Imagine trying to sell 8 million dollars worth of this stock today. That just couldn't happen.