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Technology Stocks : Activision....Returns! -- Ignore unavailable to you. Want to Upgrade?

To: Andrew Fenic who wrote (858)	1/27/1998 5:29:00 PM
From: vc21	Read Replies (1) \| Respond to of 1992

I think this drop is a result of the recent subordinated notes offering. This generally tends to happen. See, these guys get these notes at 6.75% with conversion into stock at anytime with a price of $ 18.875. So they take it up as much as possible and then short it up to the amount of stock they are going to receive. Example, $ 60 million dollar deal, 18.875 conversion, means shorting 3.2 million shares. You get 6.75% while this is happening and the stock at 18.875 to cover. Not a bad deal. Regards, Vic