Ice, actually it is a little north of a billion if memory serves, there are few of these converts outstanding. As for the reasoning for going so much above $88, I tried to give it here before. If yo want to keep a volatile stock like MU above $88 for 20 days out of 30 consecutive days, you'd better have a margin of at least 15%, or getting the price to about $100, however, this price would have taken out the then old time high at $95 (from 1995), and that will induce a horde fo momo players, those that jump into "breakout", thus getting up another 10 to 20%, thus my old target of $110 to $120. Well, I am sorry, but we beat this by some 5% or so. Today is day 13, so, if one is inclined to think this is a POS and the real reason for the ascend was repairs to MU balance sheets (leading the way to issuance of additional convertible debt), now is the time to buy those June PUT and deep in the money, since I believe that by June we will be well below $88.
Zeev |
