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To: Carl R. who wrote (880)	7/1/2000 11:24:18 AM
From: iknowlarry	Read Replies (2) \| Respond to of 937

Nice example. But the preferred holder won't go short here. He makes much more money if the stock goes higher. Lets say the stock goes to 50. He shorts at 50, and his convertible's are at 18. That's a 32 dollar premium. (this assumes that there is still time left before he can convert the preferred shares, otherwise he would just convert to stock) Also another reason not to short the stock is that a 2.3M return on an investment of 25M over 2 years doesn't sound like to good of a return. (They could just invest the 25M in the stock market and probably to better) I think the buyer has a vested interest in making the stock go higher over the next 2 years. (good for us) Of course he/she could/would short if things looked bad. regards, Larry