QUANTUM Message Board - Msg: 2955029

STOCKTALK

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Technology Stocks : QUANTUM

QNTM 10.15

-3.4%

10:09 AM EST

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To: Rational who wrote (6654)	12/13/1997 12:06:00 AM
From: PeterR1700	of 9124

Sankar <<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.>> Your analysis is a bit over my head. What is a near zero option value? Here's my thoughts - QNTM is going to go up, question is when? Considering the discount, the return is more than the face of 7%. (I think.) Having been burned (and still holding) WDC, I like the dd's but am feeling conservative in throwing money at them. I'm not a trader so I tend to hold - especially if its the right stock. My MSFT, SUNW, ORCL (oops) INTC, CPQ bear witness. Education please...Peter

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