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To: mishedlo who wrote (209565)	12/13/2002 6:01:43 PM
From: KeepItSimple	Read Replies (1) \| Respond to of 436258

The whole point of convertibles is that they cause a death spiral in the company who issues them. The convertible buyers immediately start shorting the stock, often naked, driving down the price and increasing the percentage of the company they get in return, since that percentage is based on the current market cap. This sort of vulture financing was the death blow to many dot.coms who were deseperate for cash from any source. A good rule of thumb is that a convertible in a bear market is a kiss of death. In the best case, the convertible buyers make a ton of money on the short side. In the worst, they get to buy the company for pennies on the dollar. ------------------- OK I am MU The maturity date hits. People are not forced to buy MU at $45. WTF does this mean to MU? MU has debt that is due and needs to refinance? Needs to sell more convertables but now share price is 15 instead of 45? How much did MU lose on this deal?