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Pastimes : Investment Chat Board Lawsuits -- Ignore unavailable to you. Want to Upgrade?

To: Jeffrey S. Mitchell who wrote (3350)	6/20/2002 2:22:51 AM
From: PartyTime	Respond to of 12465

"...Young alleges that mighty Salomon, along with a group of conspirators, set him up for a fall with convertible-debenture financing, then shorted the common stock all the way down...." forbes.com forbes.com Very, very interesting stuff. Any thought to the possibility that A@P got short feeds from SSB, his U.S. broker, which he then simultaneously fed to his Canadian brokerage connections simultaneous to members of his "enterprise?" I mean if you wanna get a shortmeal staked on the table, who ya gonna call, Ghostbusters or A@P? Just think. Add in A@P's shorting legions with varying degrees of basher corps tentacled from consultants of the consultants of the consultants, and I think it'd be pretty easy to make a stock go down, don't ya think? Anyway, the Forbes piece does make one think.

To: Jeffrey S. Mitchell who wrote (3350)	6/24/2002 4:07:53 AM
From: marginnayan	Read Replies (1) \| Respond to of 12465

In most cases conversion happens usually after 3-5 years. So if let's say the price rises after the convert holders short, do they not have to cover while the stock is rising. I do not think they can wait 3-5 years out to cover their short position. I still do not understand why the price would always fall when the company issues a convert. Since only one or two brokerage houses would be involved in the converts. And there are several market makers making a market in that stock. This would then indicate a joint-effort by all mm to drive the price down. I know of a company that did a convert. Just before the convert press release, the stock price started to move up and did even after the press release for another 1-2 weeks. After that it just went down almost 60 %.