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Strategies & Market Trends : January Effect 2008
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To: EACarl who wrote (9)12/9/2007 7:30:55 PM
From: RockyBalboa   of 65
 
Thanks to Doc and EAC for pointing out the convertible investment. I agree it is a different instrument; much like I mentioned the C and CFC investments (which are neither in common stock). I overlooked it in Palm as I didnt follow the stock closely after it began falling earlier the year.

There can be a prolonged disconnect between the convertible and the common stock with respect to the market price.

Albeit... the fixed rate convertible investments has embedded upside which the investors often do not fully hedge by shorting the common and options...one result is a volatility dampener as the convertible has itself embedded option characteristics.
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