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Biotech / Medical : Biotech vs. Shorts -- Ignore unavailable to you. Want to Upgrade?

To: biowa who wrote (135)	8/13/1999 12:18:00 PM
From: LLCF	Read Replies (1) \| Respond to of 427

This pretty much sums it up for me [from PB's link]: " However, not all convertible stock (and debt) offerings are the same: There are those done by "quality companies and those done by desperate companies," according to BancBoston Robertson Stephens' Champsi. In the former, the conversion price is fixed. In the latter, the conversion price is variable; thus, the investor can benefit when the stock price goes down. She added that toxic converts are the financing of last resort, structured to bail out desperate firms. "Companies in the 'nano-cap' range will go to any lengths to survive." Wasn't McCamant talkin strictly of "toxics"? Toxic bashing [me] aside... it must be said that the best possible thing that could happen to a toxic owner is that the stock opens 100 point higher whether he's short or not. So you can never strictly say he's out to "destroy" the company. You can say however that he wants to make money no matter what [natural I suppose?] and if the stock is weak that means piling in and shorting it in many cases if thats what it takes to make money, and it is clear that there is money to be made doing it. DAK