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Technology Stocks : CDRD (CD Radio) -- Ignore unavailable to you. Want to Upgrade?

To: Candle stick who wrote (307)	11/12/1997 6:43:00 PM
From: Russian Bear	Read Replies (3) \| Respond to of 904

CS, Please give me the two minute rundown of this situation. I reluctantly covered my (too large) short position some time ago, at a (too large) loss. I have continued to follow CDRD, but not as closely as when I had (too much) money at stake. This is my understanding, please correct the parts that are wrong: 1. Any preferred "C" shareholder who wishes to convert and sell after Nov. 14th may do so regardless of what the other shareholders decide to do. Thus, having "more than 50%" agree to the reorganization implies that "somewhat less than 50%" have refused, and will therefore flip and dump. Is that right? 2. If "enough" preferred holders agree to the reorganization, they will issue a 3.5 million share secondary to help finance the reorganization. What is the magic number? 60%? Or, is the 50+% they already have on board enough? I cannot immagine they could both manage to do a secondary and absorb the conversion of a large percentage of the old preferred holders.... the secondary would have to go off at a very low number, right? 3. What am I missing? This looks too easy. The last time I thought CDRD was giving away free money to anyone willing to short the stock, I got hammered, in a very big way. Is it reasonable to anticipate that Merril Lynch will prop the stock up, for purposes of the secondary? Something else? The more I think about their press release, the more it seems that you are right, and that this is their way of conceeding defeat. But, I have learned (the hard way) to be cautious. Sorry for the request, but if you could catch me up on the in's and out's of this situation, I would much appreciate it. TIA, RB

To: Candle stick who wrote (307)	11/15/1997 6:31:00 PM
From: murph	Read Replies (2) \| Respond to of 904

I would like to discuss several other issues that fit into your criteria for short-selling. I beleive you have a talent for isolating issues that have hot-air and are going to collapse. I would like to give you my phone number but I cannot find your e-mail address so please either e-mail me yours or send me the address so we can speak. My greatest short has been ONSL in the high 20's covered recently at 19-20 1/2 in about 3 weeks. I have others but do not want to discuss them on this chat-room. Look forward to speaking with you soon.