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Non-Tech : Conseco Insurance (CNO) -- Ignore unavailable to you. Want to Upgrade?

To: BWAC who wrote (1959)	7/26/2000 12:34:50 PM
From: donjuan_demarco	Read Replies (1) \| Respond to of 4155

"How about $8 to gain per share IF you are 100% correct and accurate in your assumptions, but infinity to lose if you are just a little wrong?" BWAC, with ANY short position, your possible loss is infinity. So, if you are a worrywort, don't short stocks. "WHY is CNC worth such a deployment of your trading capital? WHY does it present such a good risk/reward scenario at $8?" Because CNC is very unlikely to repay the $1.5b in debt that it has coming due. If it fails to repay the debt, there is an almost absolute certainty that it will file chapter 11, where the common shareholders will receive, at most, a few warrants. You will next ask: How do you know it will not repay the bank debt? My answer: Call your broker's bond desk.

To: BWAC who wrote (1959)	7/26/2000 12:39:34 PM
From: Mama Bear	Respond to of 4155

There was no twisting, I was wondering why you thought the absolute price had anything to do with the potential return of a short position. "How about $8 to gain per share IF you are 100% correct and accurate in your assumptions, but infinity to lose if you are just a little wrong?" Again, how is this different than BRKa? Please assume for the sake of argument that BRKa is in the same precarious financial situation that CNC is in. Also, please name one stock that has gone to 'infinity'. "WHY is CNC worth such a deployment of your trading capital? WHY does it present such a good risk/reward scenario at $8? " Because it is likely that the common stock will be severely diluted, if not cancelled outright. Regards, Barb