QUANTUM Message Board - Msg: 2953996

STOCKTALK

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Technology Stocks : QUANTUM

QNTM 10.09

+1.5%

Dec 8 3:59 PM EST

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To: PeterR1700 who wrote (6652)	12/12/1997 9:12:00 PM
From: Rational	Read Replies (1) of 9124

Peter, The interest (coupon) rate is 7%; it is selling below par because of the rating and a near-zero conversion option value. If you are buying it as a bond, then it is fine. But, if you feel that the stock (currently at 19) will trade at half the conversion price of $46 in a year, you will make (23 - 19)/19 = 21%. If you feel that the stock will not exceed 1.07*19 = 21.33 any time in a year, then the bond is useful. If you are attracted towards the conversion featue, then buying the C. bond is not a good idea; I would rather buy the stock and put a sell order for say 22 to get more than 7%. I feel the stock is very cheap, and the bottom may have reached. Good luck, though, on your investment! Sankar

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