Data Race (NASDAQ: RACE) NEWS! 2 voice/data/fax: ONE LINE! Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Data Race (NASDAQ: RACE) NEWS! 2 voice/data/fax: ONE LINE!

RACE 417.15

-0.2%

Nov 14 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Alan Edgett who wrote (29165)	7/24/1998 12:08:00 AM
From: drakes353	Read Replies (1) of 33268

Alan: Enjoying your suspension I trust. Maybe that's part of the game plan....silence anyone not mouthing the RACE line. Catching up on some of your old posts...... Does Drakes mean to imply (contrary to ALL his previous assertions about convert holders), that these converts actually converted weeks ago and held long until their pump could work? No, the way the deal was structured it was in the convert holder's interests to have the thing rally ahead of any conversions. The conversion price was set at the average of the lowest three closing bids in the 22 trading days prior to conversion. Looks like that meant they could convert shares at around .50 or so. As the stock rallied beginning on the 14th they could short against the locked in conversion price and make a tidy profit. If I know I can buy something at .50 (common via preferred conversion) and sell it short at $1 (common trading in the open market) I've got a slam dunk 100% guaranteed return. They were probably getting shorts off all the way up to $2+. This deal was an absolute windfall for the convert holders. I find that amazing, way too much risk for these boys. As he always says, they convert ata discount and sell and take their annualized 45% return, why "risk" that with an unusual (and completely un-publicized) pump operation that is usually transparent. This deal was different. It didn't convert at a discount unless RACE was delisted. The only real risk here was that RACE would go bankrupt before they could get their conversions done. I don't think he's right (there's a shock!!!)... Based on your "understanding" of this deal I can see how you'd think that. Gotta read those SEC docs to know what's going on. drakes353

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next