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Non-Tech : E*Trade (NYSE:ET) -- Ignore unavailable to you. Want to Upgrade?

To: Dave Kahn who wrote (11445)	2/4/2000 8:21:00 AM
From: BWAC	Read Replies (1) \| Respond to of 13953

Dave K, Re:<so your saying that the stock is on the mend and in the longrun we (longs for long) win?> Yes in my opinion. But what I am really saying is to analyze all the possible scenarios surrounding these convertibles, not just the obvious right now today. Our focus should be on "whats in the future best interest of the convertible holders." And that is not that they hold the stock down and short while collecting 6% interest. These holders collect the 6% no matter what until the bonds are converted. If they wait and play the shorting game until EGRP recovers to a more historic valuation, then the holders stand to GREATLY profit. And STILL collect the interest. A future timeline might look like: 1. Convertible Bond holders do nothing until stock reaches $30. 2. Collect interest payments until #1. 3. Short at $30. (or a higher price!) 4. Collect interest until the conversion date. 5. (5 years later) Convert bonds to EGRP shares at $24 per share. Cover short position for a $6 gain. Its the #5 points that allowed EGRP to get the 6% interest rate. The Holders will make however much they want to.