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Technology Stocks : Cymer (CYMI) -- Ignore unavailable to you. Want to Upgrade?

To: Volsi Mimir who wrote (11969)	12/26/1997 1:22:00 PM
From: Zeev Hed	Read Replies (3) \| Respond to of 25960

Eddy, in my post 7626 on Mohan's thread I refer to floorless debentures, I do not think this applies here since CYMI debentures have a fixed conversion. Of course, if the holders of this debt felt at the time they bought the paper that the stock could go down, they could have shorted with "impunity" as well. I presume that a large portion of the current short is indeed a hedge set up by the convertible holders, and they have no urgency to cover unless the stock get close to the conversion price. In essence, they can now use the money they have lended for other purposes (and still get interest on their debentures). This is one reason I do not expect a short squeeze to develop in CYMI. There will be a point when these short position will be covered, since the debentures holders will at that time assess the risks of CYMI declining further to be minimal. Is the price here or few more bucks below? I do not know. Zeev