Replies to post #77 on Environmental Power Corporation (EPGRQ)

[temp luvs amy]

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.

[temp luvs amy]

By the way, I track "special situations" like this one. I will have to go back and read the fine print again to see if I can determine the load on the convertible.

[temp luvs amy]

I took a quick glance, and it looks more like standard debt than convertible. In that case, they are more likely to file for BK than to issue shares. Both situations can be very dangerous. I must have avoided it because of the debt load in general. I think I have had the stock on my watch list for about 5 years.