Replies to post #110660 on Enzyme Environmental Solutions Inc (EESO)

[garde54]

A factor to be considered in determining the value of the common stock is whether the preferred stock also has voting rights. Voting rights of the preferred stock, especially if the preferred stock has voting control, could under certain circumstances increase the value of the preferred stock and reduce the value of the common stock. This factor may be reduced in significance where the rights of common stockholders as a class are protected under state law from actions by another class of shareholders, see Singer v. Magnavox Co., 380 A.2d 969 (Del. 1977), particularly where the common share- holders, as a class, are given the power to disapprove a proposal to allow preferred stock to be converted into common stock. See ABA-ALI Model Bus. Corp. Act, Section 60 (1969).

[Jim Bishop]

Actually what that does is raise further questions concerning the value put on the preferred stock in their "financials" under stockholder equity.

Commons are on them valued at par, but in Q4 if there were one million preferreds outstanding, they are valued at about $4.33/share.