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Technology Stocks : Superconductor Technologies : SCON -- Ignore unavailable to you. Want to Upgrade?

To: StockDung who wrote (796)	10/4/2000 11:36:47 PM
From: Zeev Hed	Read Replies (1) \| Respond to of 903

Truthseeker, as I have mentioned on the Floorless thread, this $37.5 MM convert is not floorless, it has a definite floor of about $10.5 (the maximum total number of shares issuable is about 3.5 MM). Furthermore, let me explain why today, I reentered SCON under $15. First the converts have no interest in hedging their converts (shorting against the block) as long as the stock is under the ceiling of conversion (just under $17). Second, the converts have a great interest in hedging their position sometime in the next, I would say seven months, at least 20% above said ceiling (they get all their money back and are at no risk if the stock rockets, but could benefit a ,ot if the stock is near $10.5 nine months hence). My strategy is thus to expect an engineered price rise to above $20 a share (possibly around the natural overhead resistance of $23) with very large volume, so the hedging can take place (about, I would say 2 MM shares) We should see an increase in the monthly short position as we go above $20 and then an exit would, IMTO, be warranted. Right now, I am shooting for a 50% gain in the next three months. Zeev