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Technology Stocks : Applied Magnetics Corp -- Ignore unavailable to you. Want to Upgrade?

To: Bosco who wrote (11705)	4/3/1998 5:27:00 PM
From: Jonathan Bird	Read Replies (1) \| Respond to of 12298

OFF TOPIC Here is a plausible scenario: 1st, to get the numbers right, the LYON holders paid less than $500 [plus ML commission, if any] for a $1000 face value note. Even in a straight conversion situation [19 shares,] their cost is less than $12 per share, not $24. I think you have the numbers wrong. The buyers paid 452.89 for one LYON. This entitles them to 19.109 shares. 452.89/19.109 = 23.70 per share. If they convert and sell anytime lower then 23.70 they will lose money on that transaction, irregardless of a short position. Jon Bird