08-01-2012, 06:22 AM
The relative values of ATPG and ATPGP (8% Perpetual Convertible Preferred) jump around quite a bit. As of today's close the conversion premium of the Preferred is about 61%, so it would appear to be of a lesser value for the moment. At times over the last few days, the conversion premium has been negative, when the Preferreds really tanked.
FWIW, today I bought some common stock at $1.49, looking at it like a perpetual call, which will either soar or be worthless.
Connect the dots.
VS