Roger's 1998 Short Picks Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Roger's 1998 Short Picks

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Roger A. Babb who wrote (976)	1/19/1998 10:42:00 PM
From: vegetarian	Read Replies (3) of 18691

Roger, What are risks in shorting floorless convertibles? Specifically, what kind of schemes are used to run the stock price up? If you look at HCOM history, they have done two back to back floorless convertible offerings one in Oct 97 and the other in Dec 97. However, if you look at the chart, the price of the stock at the time of offering the first one was about 4$; this stock was run upto 15$ in a months time on absolutely no news so if one shorted on the announcement of the first floorless convertible, one got fried for the time being. The company has no analysts tracking them, no instituitional holding worth mentioning but a low float. Did the insiders use the small float to run the stock up? or was that short covering? It seems there may be an optimal time to short such garbage because they do not seem to be always going down after the announcement of the deal and I am trying to see what factors can be used in deciding the optimal point. BTW, I have never shorted a floorless convertible so seeking more experienced advice. Thanks for your thoughts.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next