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Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?

To: xcr600 who wrote (9389)	7/11/1999 9:35:00 AM
From: david james	Read Replies (1) \| Respond to of 57584

Yes, I agree that the $1 mill in convertible debentures (now finished) and the $6 mill credit line were different deals. The danger with shorting, for those holding the credit line, is that they do not know when of if the credit line might be drawn on. So suppose that the group shorts it down and then BDE gets another private placement making it again unnecessary- the group is stuck with their shorts in an uncomfortable position. Also, the conversion price has a lid of $6/share. So even if the stock goes to $20, if BDE decides to convert on the credit line they get stock for $6/share. Why short it down with that sort of potential conversion? It would seem they would be more motivated to see the stock run. Dave