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Technology Stocks : Thrustmaster (NASDAQ:TMSR) -- Ignore unavailable to you. Want to Upgrade?

To: Chris McConnel who wrote (2242)	6/20/1999 4:01:00 PM
From: Rajiv	Read Replies (1) \| Respond to of 2443

If you read the terms carefully, shorting is allowed... There has been some discussion on this topic in #Subject-19082 Regards. Rajiv

To: Chris McConnel who wrote (2242)	6/20/1999 4:13:00 PM
From: Timothy Detjens	Read Replies (1) \| Respond to of 2443

>Did you notice the paragraph in the Press Release: Sure did, however I recommend going over the SEC filing instead - that's the non sugar coated (as much as you can sugar coat a toxic convertible) version. >But in this case, they have some kind of agreement not to short for 300 days. But just how binding is this agreement? For example, can the hedge fund setup a private agreement with 2nd hedge fund such that the 2nd hedge fund shorts the stock? Anything is possible in offshore financing I guess, but I would think they would be at least protected from that. However, I think you are missing something else - the previous toxic convertible agreement is still in effect for the first tranche. Why bother short sales, when they have already registered to sell 150,000+ previous shares at a profit? Basically this agreement is only set up to prevent Strong River from just dumping too fast. And why would they do that if they knew that the company was in good shape? Strong River wins already no matter what - they even have excercisable options for next month at a penny price! Things keep getting better for Strong River, and worse and worse for investors. Even insiders are worse off after this, as their shares lose value as well. And then less than 4 quarters later, Strong River can, if they are still around(doubtful) gut the shares at will - this is worse than the original restriction.