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Technology Stocks : EMC How high can it go? -- Ignore unavailable to you. Want to Upgrade?

To: TigerPaw who wrote (9548)	3/8/2000 9:03:00 PM
From: Lynn	Read Replies (1) \| Respond to of 17183

Dear TigerPaw: I have limited experience with convertible bonds, but from my past (one time) experience, it _is_ a good sign that EMC is forcing the conversion. Without taking an actual look at the EMC bonds, the ones I held had a due date with the qualifier that the company (SUNW) had the right to make the conversion earlier if the common stock traded above a specific price. The common price did exceed the stated price and SUNW converted the bonds. Since SUNW had had a 2:1 split (its first) we bond holders got twice as many shares as originally specified--we got the 2:1, too. I can not comment on the idea of a forced conversion being a sign that the company thinks it's stock is undervalued--SUNW's sure was not when they forced the conversion in the 1980s. My read is the company feels financially secure and wants to call the bonds (dish out the common shares) and stop paying dividends (or interest?) to the bond holders. I am not saying my interpretation is right; I could very well be wrong. BTW, I almost had to break my broker's arms and legs to locate those SUNW bonds for me. Since then, I have been unable to get him to do _any_ convertible bond digging for me. Anyone know a good book on convertible bonds? All people here at SI talk about are books on trading options. Regards, Lynn