Investors Hangout Stock Message Boards Logo
  • Mailbox
  • Favorites
  • Boards
    • The Hangout
    • NASDAQ
    • NYSE
    • OTC Markets
    • All Boards
  • Whats Hot!
    • Recent Activity
    • Most Viewed Boards
    • Most Viewed Posts
    • Most Posted
    • Most Followed
    • Top Boards
    • Newest Boards
    • Newest Members
  • Blog
    • Recent Blog Posts
    • Recently Updated
    • News
    • Stocks
    • Crypto
    • Investing
    • Business
    • Markets
    • Economy
    • Real Estate
    • Personal Finance
  • Market Movers
  • Interactive Charts
  • Login - Join Now FREE!
  1. Home ›
  2. Stock Message Boards ›
  3. Stock Boards ›
  4. Baron Capital Enterprise, INC. (BCAP) Message Board

Here is my take on why the preferred conversion ar

Message Board Public Reply | Private Reply | Keep | Replies (1)                   Post New Msg
Edit Msg () | Previous | Next


Post# of 16816
Posted On: 11/03/2012 1:26:34 PM
Avatar
Posted By: RobInvest

Here is my take on why the preferred conversion argument is flawed and being stated on the advfn site to mislead naive investors:



The $BCAP preferred share conversion is a poor attempt to manipulate shareholders into selling. Cries of dilution are frivulous when they are based on claiming to know the intent of those with preferred shares.



The argument is ridiculous for the fact that it makes no logical sense from the point of view of the preferred shareholders. Those with preferred shares want to maximize the value of their shares and seek as much money as possible. Converting a large portion of shares would be disastrous to their own pockets. The price per share would likely drop with the pending dilution of a certain magnitude.

Unfortunately, to those that choose to maintain the position that the preferred share conversion will be raining down upon us soon, the Articles of Incorporation are pretty clear about how the conversion can occur. Sure, preferred shareholders have voting privileges, however, the amendment clearly states that the common shareholders can only vote on share structure changes. Right now, none of the preferred shareholders/officers of the company own any common stock. Meaning, the current common stock holders maintain the voting rights to lock the share structure as recently announced. The preferred shareholders can only convert shares if there are any outstanding available. Based on the share structure, there is only about 30M shares available (difference between A/S and O/S counts). Therefore, this is the "huge" amount of shares that could be converted from preferreds if a current preferred shareholder so chooses. This will require written notice, 5 days in advance, so common stockholders would likely be aware when the conversion is happening, if and/or when it is actually happening.

Read the documents yourself and if you need further clarification, contact someone you may know with legal experience or give the CEO a call and ask for clarification.




(0)
(0)




Baron Capital Enterprise, INC. (BCAP) Stock Research Links


  1.  
  2.  


  3.  
  4.  
  5.  


87113432_827586823_ihmvp-contest-were-back.png
Quick Links: MVP Board - OTC Stock Contest - Big Board Stock Contest - Portfolio Challenge - Blog - iStockify




Investors Hangout

Home

Mailbox

Message Boards

Favorites

Whats Hot

Blog

Settings

Privacy Policy

Terms and Conditions

Disclaimer

Contact Us

Whats Hot

Recent Activity

Most Viewed Boards

Most Viewed Posts

Most Posted Boards

Most Followed

Top Boards

Newest Boards

Newest Members

Investors Hangout Message Boards

Welcome To Investors Hangout

Stock Message Boards

American Stock Exchange (AMEX)

NASDAQ Stock Exchange (NASDAQ)

New York Stock Exchange (NYSE)

Penny Stocks - (OTC)

User Boards

The Hangout

Private

Global Markets

Australian Securities Exchange (ASX)

Euronext Amsterdam (AMS)

Euronext Brussels (BRU)

Euronext Lisbon (LIS)

Euronext Paris (PAR)

Foreign Exchange (FOREX)

Hong Kong Stock Exchange (HKEX)

London Stock Exchange (LSE)

Milan Stock Exchange (MLSE)

New Zealand Exchange (NZX)

Singapore Stock Exchange (SGX)

Toronto Stock Exchange (TSX)

Contact Investors Hangout

Email Us

Follow Investors Hangout

Twitter

YouTube

Facebook

Market Data powered by QuoteMedia. Copyright © 2025. Data delayed 15 minutes unless otherwise indicated (view delay times for all exchanges).
Analyst Ratings & Earnings by Zacks. RT=Real-Time, EOD=End of Day, PD=Previous Day. Terms of Use.

© 2025 Copyright Investors Hangout, LLC All Rights Reserved.

Privacy Policy |Do Not Sell My Information | Terms & Conditions | Disclaimer | Help | Contact Us