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Biotech / Medical : Biotech Valuation

CRSP 56.98

+1.1%

Nov 5 3:59 PM EST

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To: rkrw who wrote (34301)	3/31/2010 10:46:11 AM
From: Biomaven	Read Replies (2) of 52153

>>naked shorting or not Doesn't really have to be naked. These institution knew a fund raise must be coming, and so they could short ahead of it, even paying the high interest rate for a week or two. Then they convert and cover and clip the discount and the warrants. So it's free money for them. It would be telling to see how quickly these preferred shares typically get converted. (I would think the conversion dates should get disclosed in the 10K). Unless you are using the preferreds to cover a short it makes no sense to convert at all (as you lose your preference). So quick conversions would mean that these are short-covering deals. Peter

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