MRV Communications (MRVC) opinions? Message Board

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Technology Stocks : MRV Communications (MRVC) opinions?

MRVC 9.975

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Aug 15 5:00 PM EST

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To: Saul Feinberg Jr. who wrote (9748)	7/30/1998 10:48:00 PM
From: Robert G. Ghazey	Read Replies (2) of 42804

The shorting against the bond explanation for the increase in the outstanding number of shares sold short confuses me in that it seems to presume that the bond is selling at a discount to its face value. Why would this be? If I recall correctly, the convertible security has a face amount of $100 million, and it was issued near the end of June for its full face amount. I believe that the CC indicated that the company cleared something like $96.4 million from the offering, and I thought the $3.6 million was the expense of issuing and selling the convertible. Why would someone pay full face value for a convertible bond and then sell it for a loss less than a month later without any significant deterioration in the underlying stock price? Further, I thought that the convertible bond issuance was a private placement. Is the bond now available for sale to the public?

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