Applied Magnetics Corp Message Board

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Technology Stocks : Applied Magnetics Corp

APM 1.190

+5.8%

Dec 24 12:59 PM EST

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To: klaus pluszynski who wrote (10489)	11/24/1997 1:50:00 PM
From: Alan Lee	Read Replies (1) of 12298

<< If APM trades below $18.60, they would be covered in the open market. Conclusion: These debenture shares may not fuel a short squeeze rally but they will help putting a floor under APM's price at current level. >> I agree with most everything you say, but I'm not so sure about the floor part. In the wort-case scenario for shorters without debentures, if APM were to make a miraculous recovery they would have to cover at whatever the market price goes to. The worst case for the debenture holders, on the other hand, is that they will have to cover at $18.60 by converting, It seems like the deb. holders inherent risk in waiting for even worse news and a potentially bigger price drop is a lot less than for the other shorters, so they be willing to wait it out even longer. On the other hand, they may be inclined to less risk than more speculative shorters ... who knows?

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