Replies to post #88639 on Baron Capital Enterprise Inc (BCAP)

[mdimport]

I also like the 20% ROI. I suspect many of $BCAP's deals will target a higher percentage return in order to repay the non-converts and deliver for shareholders. Look at $RIGH as an example - a move from $0.0001 to $0.0005 is a 500% return assuming 0% interest accruing and immediate cash out. Hit a couple of decent sized R/M's and $BCAP will have a massive payday only on convertible debt.

I understand what you're saying about the rejig of the balance sheet with respect to equity and liability, but surely if Common is cut in half by introduction of the Preferred, then Common is twice as valuable on a per share basis.

Preferred would be receiving interest and is higher up the security ladder, so it's impact isn't on the Common unless it converts (and dilutes).

There's a lot of exciting things in the pipeline, but the vast majority of the detail and structure is still unknown.