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Strategies & Market Trends : Shorting stocks: Broken stocks - Analysis -- Ignore unavailable to you. Want to Upgrade?

To: dumbmoney who wrote (982)	4/3/1998 9:41:00 PM
From: Q.	Read Replies (1) \| Respond to of 2506

Re. EA's S-3/a, looking at today's latest filing, I was unable to find any difference compared to the March 20 filing. If the difference is that small, that suggests that the SEC had only a minor comment that had to be addressed, and that it will be deemed effective in a week or so. However, don't get too excited. I noticed something I had overlooked before. The holders of the discounted convert, listed as selling shareholders, do not fit the usual profile. The biggest is a regular mutual fund, of all things -- Pincus Warburg Small Cap. This fund actually owns a significant chunk of the common already, so maybe they will just keep the common when they convert. Another holder is a religious congregation. I just can't see them getting brutal with the stock -- it seems more likely that they would hold if they convert at all. So maybe the present discounted convert deal will be an anomaly and not pound the stock price. If that's the case, at least there are two more deals waiting in the wings, including one of significant size.