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Strategies & Market Trends : Roger's 1998 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: Roger A. Babb who wrote (3080)	2/17/1998 1:48:00 PM
From: Mike Farrar	Read Replies (1) \| Respond to of 18691

ITWO SHORT ITWO looking very weak today on unsubstantiated contract rumors. Down 2 1/2 at 58. Looking for low 50's by end of the week. Jeff

To: Roger A. Babb who wrote (3080)	2/17/1998 2:16:00 PM
From: nonzeroa	Read Replies (2) \| Respond to of 18691

Roger isn't there a chance CYMI's shareholder's rights plan is simply to avoid a takeover, rather than a prelude to a convert? Looking at their balance sheet and income statement, I don't see the need for any additional financing. I agree the "shareholder's rights plan" is a misnomer and a negative for current shareholders, however, I don't see the need for a convert.

To: Roger A. Babb who wrote (3080)	2/17/1998 2:16:00 PM
From: Dale Baker	Read Replies (1) \| Respond to of 18691

Roger, shareholder rights plans are usually adopted to ward off a hostile takeover - or to create the impression that the company is a takeover target to jack up the share price. I haven't seen them associated with convertibles very often. Usually they involve giving a preferred stock voting right to common stock shareholders. Supposed to make it harder to buy out existing shareholders. I don't pretend to understand the financial side of it. But I don't remember ever seeing one of these companies actually face a hostile takeover, either. I'm waiting on first quarter earnings to short the semi companies. Asia should really kick them in the sensitive regions then.

To: Roger A. Babb who wrote (3080)	2/17/1998 10:32:00 PM
From: Candle stick	Read Replies (1) \| Respond to of 18691

Hi Roger, read your post about shorting CYMI. Curious about the rights deal. Some are saying there is takeover talk surrounding CYMI. They also just announced a 50 million dollar share buyback. Why would they do a convertible deal? If they needed money they wouldn't be buying back their shares, would they? Were you aware of this? I happen to be long CYMI at the moment from 15 and almost got out today, and will probably bail tomorrow. So don't take this the wrong way. I am not trying to hype it up, just want to know if you still feel the same about shorting it now. I am short AMZN for awhile now and sold alot more at 64 5/8 recently. Where do you see that in the next couple of weeks. Lots of talk about a secondary being announced soon. Any thoughts? Best of luck to you........;^)