SI
SI
discoversearch

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.
Biotech / Medical : ARIAD Pharmaceuticals
ARIA 23.990.0%Feb 17 4:00 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: LLCF who wrote (629)8/9/1999 5:38:00 PM
From: Biomaven  Read Replies (2) of 4474
 
David,

Let's assume the bad boy has shorted a million shares at 1 1/8. Now what is his incentive to wait more than 22 days before exercising and lock in his guaranteed profit? Remember the company has the right to redeem the convertible under certain circumstances, and so his position is not risk free. For example, if Hoechst decided to gobble ARIA, they would potentially be at risk.

My conclusion is that once they short they are likely to convert soon after, and so if they haven't converted they also probably haven't yet shorted. As you say this is good news/bad news - it means the holders aren't the "I'm outta here quick" guys, but it means that any selling pressure from them is still to come.

Peter
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News