Alaska Air (ALK) Message Board

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Non-Tech : Alaska Air (ALK)

ALK 40.87

-0.5%

11:53 AM EST

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To: Dale Baker who wrote (17)	2/3/1998 6:20:00 AM
From: Snowshoe	Read Replies (1) of 152

The last time I checked (a few months ago), ALK had the highest short interest on the NYSE. I assume that this was due to convertible bond arbitrage, in which the bond holders short the stock using the future convertible shares as security. The bondholders would then use the converted shares to replace the borrowed shares, rather than sell them. Perhaps you can look up the amount of shorted shares to see how it compares to the number of shares to be converted. I'm curious to see what happens to the price, because I own stock in another company (WIND) that recently issued convertible bonds. I assume that the upcoming ALK conversion is already priced into the shares, and that it will have no significant effect. The PE is currently a lot lower than LUV, which is a comparable regional airline. P.S. ALK is my favorite airline. I once won a free bottle of champagne for having the biggest feet on a flight from Petersburg to Juneau! <g>

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