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Gold/Mining/Energy : Gold and Silver Mining Stocks -- Ignore unavailable to you. Want to Upgrade?

To: russwinter who wrote (1958)	8/29/2001 4:45:49 AM
From: W PAUL	Read Replies (1) \| Respond to of 4051

Some of these toxic convertibles played havoc with small biotech companies strapped for cash before the 1999+ boom. There was a SI discussion board with various experts on this which I cannot locate at present. I remember there was some way in which the holders could hedge at a slightly higher price than the original level and then short the stock furiously to deliberately make the stock as cheap as possible and pick up maximum holding. Eventually this was countered by minimum convertible prices. If Geomaque has not got a minimum convertible price it is either ignorant of what can happen or very desperate. The stock I remember best was ARIA which was shorted down to about US$0.50 cents, with worse expected. This was a fraction of its pre toxic price. The management then decisively sold assets to rectify its balance sheet and "repudiated" the convertible. The holders went to court and there was some fairly expensive out of court settlement, nevertheless this action lifted the company from its then deathbed. It eventually reached a price of over US$40.00/share at the height of the boom in early 2000.