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Strategies & Market Trends : Roger's 1998 Short Picks
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To: BDR who wrote (18278)7/9/1999 10:20:00 PM
From: david james  Read Replies (2) of 18691
 

"With the stock well over six bucks I imagine they would convert"

I am not sure what you mean by this. I am sure you are aware that a convertible holder wants the lowest price possible for conversion. The lower the price the more shares they get. That is why debenture holders often short it down and attract other shorts.

Yes, Roseworth converted their remaining $250,000 in debentures and I believe I saw in the S-3 that they are holding. So far I see no insiders selling.

The $6 mill was a potential credit line if they needed it. Furthermore, it was set up as an unusual form of debenture, according to the CEO. If they had used it then the holder would provide credit and be given stock at a discount to the price at the time the credit was drawn .

However, that is a moot point since the company raised enough capital through the group of 7 investors to make the debentures unnecessary. Those investors include the Saudi Royal family, and heads of 2 european entertainment groups and one U.S. entertainment group (CEO of Rysher entertainment rysher.com )

These groups should provide enough air time to allow theauctionchannel.com to have access to most of Europe and the U.S. within 6 months via simulcast.

But if you think its a good short, then go for it.

David
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