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

To: Think4Yourself who wrote (7602)	9/9/2001 7:45:41 PM
From: Gottfried	Respond to of 23153

John Q., some of the stocks from Barron's >Barron's cover story features a roundtable of analysts assessing the past year's tech wreck. Among stocks receiving favorable mention based on valuation and market positioning were e-commerce system builder BEA Systems (BEAS: news, chart, profile); Motorola (MOT: news, chart, profile), seen gaining against rival Nokia; wireless chip maker Intersil (ISIL: news, chart, profile); metro networker Riverstone Networks (RSTN: news, chart, profile); enterprise software companies Peregrine Systems (PRGN: news, chart, profile) and Freemarkets (FMKT: news, chart, profile); and Web search engine GoTo.com (GOTO: news, chart, profile).< marketwatch.com The Barron's link interactive.wsj.com

To: Think4Yourself who wrote (7602)	9/9/2001 11:31:53 PM
From: energyplay	Respond to of 23153

For more details on converts, we need someone who knows more than I do... One possibility if hedge funds are in a short squeeze and this is not widely know, or the stock is still down - Straight forward stock deal- An investment banker approcahes the company an offers to do a private placement. Maybe the stocks is at 30, and the hedgies shorted between 55 and 40. Nominally, they have a profit, but if they all try to cover, it will kick the stock to 75 or more. The stock is probably held by mutual funds, who by now would love to squeze the hedge funds. So the company does a private placement at 33, slighlty above the market price, and gets some much needed cash. The investment bank places the stock with the hedgies at 35 to 40, plus full commisions. The hedge funds get to cover _some_ of their shorts, and the investment bank lets a little onto the market to "maintain liquidity" and holds some to "maintain an orderly market". The stock sinks a little, maybe to 28-29, and the company management looks REAL SMART - they put one over on Wall Street. Now this is still not enough stock for the hedge funds to cover, but as time goes by, lock-ups end, employees exercise options and sell, and some of the mutual funds have redemptions and must sell or move on to other stocks - why not, since this stock isn't going anywhere.... too many sellers... Oh, by the way , there's probably a condition in the offer keeping the company from using the proceeds to buy back stock for a year or so.... either that , or the investment banks pick companies which are stuck for cash. If they had tried to sell to the mutual funds, they would have known what was happening, and squeezed by asking for physical delivery of shares. The investment banks finance the hedge funds, and clear their trades, so they know who's hurting where. Many, if not most, of the hedge fund managers used to work for investmnet banks. Much more common would be a debt offering with warrants to buy the stock at say 45. Or Another convertible offering ! This lets the hedge guys adjust their position so they don't have a loss. The debt conditions could forbid stock buy backs for a number of years.... If this is done as REG 144, it's only sold to overseas insitutional investors (hedge funds have ways to qualify as overseas if they aren't set up that way already) Want see a long term squeeze ? Look at Krispy Kreme KKD --- it levitates...