MRV Communications (MRVC) opinions? Message Board

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Technology Stocks : MRV Communications (MRVC) opinions?

MRVC 9.975

-0.1%

Aug 15 5:00 PM EST

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To: rascalbythesea who wrote (14160)	6/28/1999 2:30:00 PM
From: WebDrone	Read Replies (2) of 42804

Benny, what don't you understand about the hedge? If you buy the bond- you get the percentage rate. If you short the stock, you are covered, even if the company disapears. The short covers the loss of capital. You don't want to cover until the notes are ready to expire, or MRVC is well over $20. Because that would be more risky than just collecting the bond's dividends. All these guys are looking to do is beat the Tbill. I'm saying that maybe MRVC just bought back more debt. We would not find out until the next Q. However, the bondholder, having their loan covered early, would find the short to be a risk, since they sold the convertible bond that covered their upside risk of being short. I'm with you- the future looks a lot less frightening than it did just a little while ago. However, the big money guys who can swing these bonds are probably pretty conservative with that much dough. COULD SOME OF THE FINANCIAL TYPES ON THE THREAD CRITIQUE THIS? WebDrone (ask me about the unofficial SI MRVC website- almost ready to go live)

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