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

To: RumbleFish who wrote (1285)	6/25/1998 10:32:00 PM
From: Peter V	Read Replies (2) \| Respond to of 2506

Rumblefish - do you see this GMGC convertible as a typical floorless convertible, with a corresponding dilutive effect on the stock value? Seems like a lot of convertibles allow conversion at a discount, while this one allows it at a premium at closing, or at market prior to conversion. I guess the convertible holders could count on dilution to tank the stock and make money by shorting it, and then covering it by converting at the lower market price. Are the investors offshore companies? (that don't need to play by US rules?) On the second stock you mention, if it reverse splits, it may come back up to $5.