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Technology Stocks : America On-Line: will it survive ...? -- Ignore unavailable to you. Want to Upgrade?

To: IKM who wrote (5814)11/12/1997 10:29:00 AM
From: vegetarian  Read Replies (3) | Respond to of 13594
 
Yeah, but the conversion price of $104 does not provide any buy side protection.
So here you could short it and if it runs up over your short sell price which is below 104 you are still screwed because converting will not help you, it will just limit your shortside losses to $104 buying price which is not much of a consolation at this point, one could achieve better protection with closer OOM puts.
Think again!



To: IKM who wrote (5814)11/12/1997 10:34:00 AM
From: Steve Robinett  Respond to of 13594
 
IKM, Assuming I played with my calculator correctly, the converts look like a 3.3% stock dilution or about 2-3/8 per share. In other words, with today's opening, the dilution is already priced in.
Best
Steve


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