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To: Harry J. who wrote (36)	8/9/1999 1:12:00 PM
From: Mark Ivan	Respond to of 48

Harry, I've read your piece twice; maybe I should it it three times. It's a lot to digest. I agree with what you are saying in your first paragraph; at least the essence of it. But I doubt any of these debenture holders convert and hold. That would just be like buying the stock. Its better to have the ABILITY to convert rather than be converted. (sort of like an option, best to hold and wait and see if you go into the money before converting). But I think you're missing the main point. These people get their money back, plus interest. That's the worst that can happen (barring BK). Better to short the stock and receive the money from shorting. They now have this money to invest, with their note as collateral against the short. If the stock tanks, they short more, as they will be getting more stock from the variable conversion price. So now, they get more money from the sale to invest elsewhere and also are making money on their short. As the stock drops more, they short more. In the end, they can cover their shorts and get their loan back plus interest. That's how I think it works and is the much more profitable way to play it. At any rate, we probably won't see too much downward pressure until OCT. That is when the variable conversion kicks in. But I am no expert... Mark