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

To: Peter V who wrote (1288)	6/25/1998 11:29:00 PM
From: Mama Bear	Respond to of 2506

"at a price based on the market price of its stock before conversion, Peter, reread the above sentence. The way that I read it it's not at the market price but based on the market price. If they'll let them convert at 85% of the market price, that's a price based on the market price. I am just starting into reading the Edgar filings. It really looks like a serious dilution machine at first glance. Barb

To: Peter V who wrote (1288)	6/26/1998 6:45:00 PM
From: RumbleFish	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?>> Peter, I don't know any more about it than was in the press release. Maybe I shouldn't have brought it up on this thread because it's more of a high-flier than a broken stock. Lots of momentum, going from 1 to 15 so far this year. It's much-hyped product, "Portico", is scheduled to be released July 30. In fact, I was thinking of taking a small _long_ position until the release. Good thing I didn't. It's broken down substantially the last couple of days. Also $35 mil is much bigger than the typical convert mentioned hereabouts.