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Technology Stocks : Global Crossing - GX (formerly GBLX) -- Ignore unavailable to you. Want to Upgrade?

To: Mama Bear who wrote (11303)	5/17/2001 2:38:34 PM
From: BWAC	Read Replies (2) \| Respond to of 15615

I've already given several scenarios. 1.)Convert at $40. Sell immediately short at $45 since most converts have a bit of a discount built in. 2.)Pressure the market down with the hedged convert short shares. 3.)Makes no difference to these hedgers. They collect interest and short profit, if any, until conversion. Short into strength, cover on weakness, reshort, reshort, break the chart down a little, then let the momo bunch take over and pile on the downtrend. 4.)There's always time for the shares to go up later, closer in time to the convert date, for the hedged holders to profit to the upside as well. 5.)Eventually reach a level where it is no longer sensible to be short. Cover for the last time. Locked in short profits. 6.)Let natural trading, natural business conditions, natural buyers take the price back up. Maybe even buy some on the way up with the short profits. To juice the price. But basically stand OUT of the way of any price rise. 7.)Fast forward a few years. Convert at $40, hopefully holding a stock selling for $90. And you full well know that none of this is provable, nor can any direct referenced example be found. So it is all in theory and experience and talking to managers who ACTUALLY do this very thing. "it doesn't happen" coming from someone who always seems to be short and piling on ala CNC doesn't ring as genuine to me. Sorry.