Cymer (CYMI) Message Board

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Technology Stocks : Cymer (CYMI)

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To: Zeev Hed who wrote (18646)	7/22/1998 4:18:00 PM
From: Curlton Latts	Read Replies (1) of 25960

Well Zeev I've only been responsible for issuing over $400 million of cnvt. debs. so maybe I missed something. I think we both ought to think it through again though. Your comment >>>>"they sell short against the block, getting back (depending on the shorting point) much more than what they paid for the convert. They leave this position as is, since they have all the money they invested in the convert back" seems to miss the crux of the financial analysis by a wide margin. I don't think even Joseph Jett could have accomplished that feat. Sure they get interest on the short as long as the bank doesn't short change them but that's it. Other than that they've got the full load of capital tied up going nowhere. Every time this stock moves up it takes a bite out of their hide for a full 100% of the upward move. The hedge here is a ceiling hedge only. It was paid for dearly with a penurious coupon. The short interest here is not all just arbitrage either. It's desperate wise guy gamblers. Desperate wise guy gamblers eventually end in an ill fashion generally. Good Luck To Each And All Curly ~~~~~~~~^^ [6.6] .....> [_

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