Sounds like a great idea!
The market makers bought some of the convertible bonds and more than likely shorted stock at 48 ½ - the exercise price. They have a huge profit now, so they might be inclined to cash in Monday morning. See post 1708:
On July 31, 1997, Wind River Systems, Inc. (the "Company") sold an aggregate principal amount of $140,000,000 5% Convertible Subordinated Notes due August 1, 2002 (the "Notes), of which $23,330,000 aggregate principal amount (the "Regulation S Notes") were sold in reliance upon Regulation S under the Securities Act of 1933, as amended (the "Act"). The Notes were initially purchased by Deutsche Morgan Grenfell, Inc., Hambrecht & Quist LLC and Wessels, Arnold & Henderson, L.L.C. at a discount of 3.125% of the principal amount of the Notes. Net proceeds to the Company from the sale of the Regulation S Notes, before deducting legal and other expenses, were $22,600,937.
I'm not so sure it's a great idea to invest in a stock where the market makers have such an obvious incentive to manipulate the price! |
