To: John Madarasz who wrote (7131 ) 10/24/1999 2:11:00 PM From: Bosco Respond to
Hi John - you made many valid points, some of which I ve actually not anticipated. For example, if the hedgers do not want to be detected, and if they want to be totally above board, they will ve to cover their short positions before the next reporting period. And indeed, as I ve stated before, pump n dump is part of the gyration. They will not convert as long as there is benefit left hanging on to the convertibles. There lies my concerns. If I were a trader, none of these matters to me. Why? I would simply go with the float. However, I am not a trader. I do like the latest incarnation of GMGC though. And no, I do not think it is in the death throes [yet.] However, I would be hesitant to be an investor b/c I do not know how diluted the share base would eventually end up. The more diluted the base, the less likely the value of the common if I take a position now before the conversion issue comes to an climactic end. Hayes was the classic case of a survivable company buckled under the weight of toxic debt. Personally, I ve numerous experiences. Most of the companies had their back against the wall even before they took on the toxic. However, two of them were foolish enough to be duped. Without naming names, one had to negotiate a redemption of its $30MM with $36MM after one year! During that time, common plunged 75% or more b/c it had to sell asset to finance the payoff.
