Cymer (CYMI) Message Board

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Technology Stocks : Cymer (CYMI)

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To: Emile Vidrine who wrote (8378)	11/5/1997 7:27:00 PM
From: Jess Beltz	Read Replies (3) of 25960

Emile, the conversion price is fixed at $47. It is exactly like the exercise price on a call. If I'm a short seller, and I short at ANY price below $47, and use bond conversion to cover the short position, I've lost money. There are two things to consider: (1) The share price must be above $47, or conversion doesn't make sense. No one would pay $47 via the bonds for Cymer shares if they're selling in the market for less than that. (2) Were the short seller stupid enough to use the bonds to cover the short position with the price of the shares less than $47, he/she's automatically lost the difference between $47 and the share price on every share covered. jess.

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