"the share price and pref share price are negatively feeding off one another and have entered into what is called a "death spiral"
that means now,i understand these BBI bonds come to maturity in Dec 2012.
"these bonds promote large drops in share price. This is because once a bondholder converts the bond into shares, the influx of these new shares dilutes the share price. Furthermore, bondholders have a large incentive to short sell the common stock prior to conversion, knowing that the share price will fall after the conversion is made. The short sale causes another drop in share price, giving this security its 'death spiral' name."
These bonds do not come to maturity till Dec 2012 ,any short sale will happen prior to this conversion,that is almost 4 years from now,are you suggesting we are in a death spiral almost 4 years before the opportunity for conversion?
BBI Price at posting:
6.7¢ Sentiment: LT Buy Disclosure: Held
