Anthony @ Equity Investigations, Dear Anthony, Message Board

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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony,

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To: TH who wrote (37791)	6/4/1999 5:41:00 PM
From: Barronio	Read Replies (1) of 122087

In other words is the only way this investor could profit is if the stock moves upwards in price from his agreed to conversion price. If the investor has not yet converted, it's in their best interests for the stock to go down. This can make the investor money in 2 ways: - The investor could short at the current price, then convert at a lower price and use the shares to cover the short. - The investor could convert their shares at the lower price (gaining more shares because of the lower price) and then be long from that point. This is why floorless convertibles are called "death spirals". The published short position of 20% may not fully disclose the true short position. The short numbers are only collected and published once a month, and may be dated. Also, I don't think naked offshore shorts are counted. If the stock is difficult to borrow because it is subject to UPC 11830, that could be an indication of naked shorting. If I am wrong about any of the above, or missed something, someone please correct me! What stock is this you are concerned with?

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