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Politics : High Tolerance Plasticity -- Ignore unavailable to you. Want to Upgrade?

To: Razorbak who wrote (2367)	3/24/2001 11:30:05 AM
From: jim_p	Read Replies (2) \| Respond to of 23153

Razor, The company issued $100,000,000 of 7% convertible subordinated notes due APRIL 15, 2007. The conversion price is $42.90 per share or 2,331,000 shares of common stock. That would leave approximately 4.3MM shares that are short the common, and aren't just hedging the notes. Hope that helps. The shorts will have to cover at some point in time, and I believe most if not all the bad news is priced into the stock. The company confirmed guidance just last month and stated they are "highly confident in making both 1Q, 2Q and 2001 numbers currently estimated by the street". I know their has been a lot of discussion about the excess inventory issues as a result of the down turn. In the last conference call, the company stated that there was excess inventory in the pipeline as a result of excessive orders from their customers. The company stated that they took an aggressive stance with their customers and shipped the excess inventory back to their customers. They feel they will be able to buy it back later when necessary. As a result, the inventory turnover actually improved last quarter by 45%. They also believe that they have been advised by their customers of most of the cut backs they are going to see. They stated they have a 10% cushion built into their numbers in the event of addition cutbacks. Last conference call address: actmfg.com Can you say Short Squeeeezzzzzzzeeeeeeeeeeeeeeeee!!!!!! Good luck, Jim