my bbi valuation / dbct sale flows, page-229

An earlier posting from enumerate on death spirals.

Read it again. Pretty straight forward. Can't even see why it is a topic of discussion. Sure the GFC and overgearing in BBi playing its part, but the main reason for the drop is the threat of dilution. Pure and simple.

"The following is a definition from:

http://www.investors.com/Education/FinancialDictionary.aspx?Nr=AND(Dictionary+Subject:Financial+Theory,Dictionary+AlphaNumeric:D)&type=alphaNumeric&subject=Financial+Theory

Death Spiral

A type of loan investors lend to a company in exchange for convertible debt, which, like a convertible bond, typically has provisions that allow the investors to convert the bonds into stock at below-market prices. This can lead to the original shareholders losing control of the company.

Dargie's use of the term "Death Spiral" is correct BY DEFINITION"