RE: Credibility Preferred A’s and B’s (I think B’s were mentioned) will be redeemed for the full 25. I think everyone was shocked by this statement including the analysts. I would be extremely shocked if they did redeem. However on the off chance that the Q4 shows big promise and the stock goes above 2 then people who bought A’s, B’s or the commons at these prices are going to hit the lottery. I use lottery as I am not expecting this.
If the common share price stays low, then YLO can exchange the Preffered A shares at 12.5 time the price of common shares starting in April. The big question is will they? At some point in the future YLO will have to issue new shares or debentures to replase maturing preferred or debentures. They will have zero chance of doing that if they exchanged the Preffered A's at only 10% of the original issue price. In order to attempt to maintain the investors confidence, I believe they won't exchange the A's until they have to in 2013, and then it will be at $25. I hope I'm right as I bought some preferred A's.