SI
SI
discoversearch

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 : The New QLogic (ANCR)
QLGC 16.070.0%Aug 24 5:00 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Craig Stevenson who wrote (19005)10/30/1998 4:05:00 PM
From: Eleder2020  Read Replies (1) of 29386
 
>>On 11/5/98 each preferred share will convert into 8461 common shares. The maximum possible dilution is therefore another 5.92M shares. <<

Craig- Here's the bottom line, 5.92 million maximum to convert-
1)2 shares they need to cover.
2)Say they sell 2 million shares this month again.
3)leaves them 1.92 million shares to convert next month or short this month.
4)Either way at the maximum they have 3.92 million shares over 1 or 2 month period
5)If they do short and if Ancor stays at this price despite their shorting they start to take on risk as the maximum they with have is closer to 4.4 million shares of which 2 million shares is needed to cover their short and they convert another 2 million this month that leaves them with 400K shares to short this and some risk as 100% leveraged is not in their best interest.

Either way they have at max 3.9 million new shares coming this way in
chose your medicine
1)Convert and take it all (3.9 million shares) in the next two months. Last conversion is need to cover(box 2 million shares) their short position.
2)Convert and short and get most of it out this month and convert the small amount that is left over in the second month and cover their short in the third month.
3)My guess is that they will sell over the two month period with no risk.
4)Still talking about 3.9 million(maximum) shares that will get sold or shorted either in 30 or over a 60 day period.

Caveat-They could always have those 2 million shares to cover already in the safe deposit box and just haven't technically covered.

Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News