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Gold/Mining/Energy : Harken Energy Corporation (HEC)

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To: Zeev Hed who wrote (3088)7/1/1998 7:53:00 PM
From: Timelord  Read Replies (1) of 5504
 
Zeev, I am curious about these 5% European Convertibles. They obviously are loaning at below market rates. Is it tacitly assumed that they will increase their return by leveraging and shorting against the block when these loans are made? Otherwise I don't see how they can justify the risk. Silly me, I never considered this and the effect on the stock price before - still another reason to read S-3's and 10-K's carefully.

Alex
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