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The Beauty of Citigroup's Coming Stock Conversion

Fly in the soup that will cure the borrow and destroy those long the preferreds for the arb? Here you go: 20 billion+ newly issued shares subject to a 100 for 1 reverse split. You won't be able to squeeze through the exit portal fast enough to preserve what you made in the arb. Why do you think the firm is so willing to return the repo shares thirty days later? Makes one say humm.

Discl: I'm long the convert (CprI) but won't be waiting to recieve common in exchange.

Peregrine Pharmaceuticals May Be On To Something

From the evening wires:

Just got picked for an oral presentation at the Society of Nuclear Medicine Annual Meeting to be held June 13-18, 2009. More than 65 patients with recurrent GBM have received Cotara in the current and previous clinical studies. Localization and accumulation of the drug to the tumor have been excellent and longer-term survivors (greater than one year from the time of Cotara treatment) have been observed in all of the trials, with some GBM patients from early clinical studies now alive more than 8.5 years after treatment with Cotara. Expected survival for patients with GBM is approximately six months from time of disease recurrence.

Also an Oral at ASCO

Time to revisit?

The Convertibles Collapse Offers Investment Lessons for All Investors

Artfull and informative. Very good on credit spread explosion when an illiquid market meets supply and then stays there. Tons of converts remain priced to insolvency without regard to the underlying. Amazing absence of long onlys to fill the void although I notice that Calamos is reopening. Amazing returns to be had if you can correctly identify those "busteds" that yield 10 - 20% down 40% from par that will remain in business.

Time to Say Goodbye to Fairpoint Communications?

Here is a "potential" flaw in the model. You ought reference a Winstream/Valor like transaction where a larger higher payout rural landline company (VLR) is acquired by a newly created smaller rural landline spinout (WIN out of AT). Poof goes the high payout issue, and Windstream is known to be hunting this style of bolt on.

Buy the way, a large part of the VZ rural assets that FRP is acquiring come from the old GTEacquisition, which AT & VZ always swapped for Justice & FCC settlement, so yes I believe that something on scale is always possible.

Discl: Long WIN FRP VZ ALSK IWA CZN