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Technology Stocks : Applied Magnetics Corp -- Ignore unavailable to you. Want to Upgrade?

To: Bosco who wrote (10452)	11/21/1997 8:00:00 PM
From: fut_trade	Read Replies (1) \| Respond to of 12298

<<by the people shorting against the box (when the price was in the 60s.)>> From wsj - online version APPLIED MAGNETICS 10,527,746 9,316,049 13.0 1,135,618 Wow, it's 54% of the float. As I recall, when I checked the old short interest numbers, the short interest was roughly constant on the way up to the 60's, and the way back down -- when Vinik unloaded. A lot of the short interest accumulated in the 20's I think, after the crash. At any rate, I guess the shorts are confident that Applied Magnetics earnings are not on the rise. Peter

To: Bosco who wrote (10452)	11/24/1997 8:11:00 AM
From: klaus pluszynski	Read Replies (1) \| Respond to of 12298

Bosco, I've been looking into this debenture issue, and would appreciate your comments: Based on edgar at edgar-online.com the no. of shares resulting from conversion of the debentures is around 5.3 mil. That's about half of the current open short interest. Even if those shares are not counted, APM would still make it into bigchart's top ten with more than 20% open short interest ratio ! But even those 5.3 mil. shorted debenture shares (if they exist) would have to be covered ultimately. As long as APM trades above the conversion price of $18.60, it's cheaper to convert the debentures to cover the short position. If APM trades below $18.60, they would be covered in the open market. Conclusion: These debenture shares may not fuel a short squeeze rally but they will help putting a floor under APM's price at current level. Or am I missing something? Klaus