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Technology Stocks : Ampex Corporation (AEXCA) -- Ignore unavailable to you. Want to Upgrade?

To: Hal Campbell who wrote (9323)	6/18/1999 1:11:00 AM
From: Carl R.	Read Replies (1) \| Respond to of 17679

I personally doubt that the debt holders will elect to hold the stock as it is too risky for them. I therefore believe that you are mistaken if you believe that they will benefit from a rising stock price. Rather I expect that if they know in advance they will be receiving stock, they will sell the stock short over the month prior to redemption date attempting to sell at an average price equal to the redemption price. Their goal is that on the date they receive the shares it nets them at zero, and they would thus not benefit from any news released after the quarter. Of course I was also surprised that holders of the convertible issue elected to convert and sell stock back in February. I would have expected them to short the stock but not convert so that they could continue to earn interest until the redemption date. Carl