PPHMTOOLONG,
I like this quote in your last post:
"My crystal ball is no better than everyone else's here. In other words our predictions based on sketchy to no information and the "he used to work with him ten years ago" kind of connections are entertainment more than anything else IMO."
If you put me on the furthest known star in the universe, with six degrees of separation I could make a connection to PPHM. It is well to remember that the universe does not revolve around PPHM but rather PPHM is just one small asteroid moving through the universe.
PPHM is flexible and fluid as conditions change and their corporate culture seems to be one of a constantly "moving target". It is easier to assess whether you think it is generally overvalued or undervalued that it is to assess what the particular course of action will be chosen.
So, back here on Earth and because it is closer in time, I am sticking with my idea that the conversion point on this preferred offering will be between $3-4/ share. This seems to be a fair mathematical trade off for the yield versus the risk.
Having seen the ATM sale in the last quarter and the additional cash on the balance sheet, I think the preferred offering E series will be much smaller than fully authorized. This is also in accord with PPHM corporate culture which is one of "titration" and funding to meet need. (I am not a big supporter of PPHM corporate culture--just commenting)
There is nothing in the preferred that stops PPHM from using additional ATM and nothing that stops PPHM from issuing "series F" preferred for example (after the passage of time and news) at a "higher conversion price". There is nothing, for that matter, to stop them from issuing straight debt. If I am correct that this will be a much smaller preferred than authorized, I would expect with high probability that further series preferred may be used when PPHM can do well with them. (They can be issued under essentially the same set of docs and authorization.)
A conversion price on this preferred between $3-4/ share would expose the undervaluation of the common stock. I am not sure how quickly this may be perceived. A second preferred at a higher conversion would be a different matter as that would show a clear trend.
Just in my opinion.
Best Regards,
RRdog
