Today is the 10th trading day prior to the first
conversion period. Based on the closing price of the common
these ten days, the average is under $1 so we should
get 24.46 common shares for each Pref B, Correct?
At no time in the past 10 trading days did PZN
trade under one dollar. So how could the average be
under $1. ? I show the following
(based on Yahoo) for the past ten
trading days: $
1.9375, 1.9375, 1.8125, 1.8125, 1.7500, 1.1875, 1.1875,
1.1250, 1.000, 1.3125 = 15.0625 total. divided by 10 =
1.50625 = average price per share. 24.46 divided by
1.50625 = 16.2395 shares for each Preferred B
converted . I don't know how PZN will handle the fractions.
Ben, I believe you are correct. Therefore in the
first conversion period a PZN.B shr will become
16.239004149 shrs of common.
100 shrs of PZN.B will
become 1623.9 shrs of the common. Upon conversion,
fractional shrs will be credited in cash, and the account
should show 1623 shrs and .9x1.50625 ($1.36) in cash.
That's my take, anyway.
Question is, what will
PZN trade at during the ten days preceeding the
second conversion period? More than a $1.50 average?
Those meaning to convert will have to decide the answer
I've been out of touch with the board since last
week or so when I sold some PZN for tax loss
purposes..can you give me your assessment as to what the
general opinion is regarding the conversion and when is
the window open ?
Would appreciate, still have
It looks like today's close will be $1.3125. This
should mean a conversion price of $1.50.
just for fun, I checked Yahoo's historical quote data
and found that for the period prior to the dividend
there is an adjusted price listed which totals $4.4626
for the first five days of the conversion period. If
this price is used the conversion price becomes
Note: the press release says the average close on the
NYSE. It does not say anything about using an adjusted
closing price. But, I for one am confused.
As a note of interest. If you buy one share of
the preferred B today at $18.50 and you convert
during the first conversion period to 24.46 shares of
PZN common, will the 24.46 shares of common hold at
$1.00 or sink to $ .75 = 18.5 / 24.46? If the common
holds at $1.oo you can sell for a 32% profit.