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

To: Dale Baker who wrote (3086)	2/18/1998 2:05:00 AM
From: Roger A. Babb	Read Replies (2) \| Respond to of 18691

Dale, it has been my experience that shareholders rights plans and convertibles are usually linked. Did my DD on CYMI tonight. Low and behold they did a big convertible (172 million) in August 1997. News release said conversion price was fixed at $94 per share. But after reading the over 100 page 8k, I have concluded that the convertible is in effect floorless. Just about any change in the company finances causes the convertible to be repriced at market. With rights plans and convertibles, I short first and then do my DD. In the case of CYMI, my DD says to hold the short position.