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Technology Stocks : Zenith - One and Only -- Ignore unavailable to you. Want to Upgrade?

To: ayn rand who wrote (4596)	3/11/1998 7:13:00 PM
From: B.D.	Read Replies (1) \| Respond to of 6570

I finally heard from someone at Zenith investor relations regarding when the 1997 4th quarter results would be announced. She said it had to be some time this month, that a specific date was not yet "known", but that it would be in the next week or two. She also said there was no explanation for the flurry of ZE stock activity today.

To: ayn rand who wrote (4596)	3/14/1998 12:14:00 PM
From: Astro59	Read Replies (1) \| Respond to of 6570

How come no one is interested in Zenith Convertible bonds Zenith has a 6.25% convertible bond due in 2011. It is convertible into 32 shares at any time at the option of the bond holder. It is traded on the New York Bond Exchange. Its symbol is ZEC.F. A $1000 bond is currently selling for around $700 for an effective yield of 8.9%. Obviously it is not worthwhile to convert the bond now since converting the $700 bond into 32 shares of stock means you are in effect paying 21 7/8s for the stock. BUT, holding the bond gives you a chance to participate in any stock move while getting paid while you wait for the HDTV royalties to roll in. On the other hand if Zenith goes belly up, bond holders have a prior claim on assets over stockholders and the rights to those royalities ought to be worth something. Zenith bonds in the last 6 years have been as high as $940 per $1000 bond and below $500. So you can get a lot of play out of them. Also you collect $62.50 per bond per year while you're waiting for something to happen. Is there something wrong with this strategy?