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Strategies & Market Trends : Roger's 1998 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: Mama Bear who wrote (11874)	7/22/1998 12:11:00 PM
From: GuitarMan	Respond to of 18691

AND November put options have very little premium right now. Thanks...Mark

To: Mama Bear who wrote (11874)	7/22/1998 1:17:00 PM
From: Oeconomicus	Read Replies (2) \| Respond to of 18691

Barb, re AND, I agree with your interpretation of the "floor" - it comes to just over $5. Another "weakness" of this as a short, besides the fact that they have revenues and profits, is that it is not a "discount" convertible. Most of the really nasty death spiral deals allow conversion at a discount to the market price. Some even include warrants at a minimal premium to market at the time of the deal, well within "pump" range and giving the convert holders a supply of shares to "dump" to kick off the spiral. The only way the convert holders in this deal can convert at a discount to market is if the stock is rising (or at least rebounding from a decline). Obviously they benefit from a lower price (they get three times the number of shares at the floor than at the ceiling), but they lack some off the tools for easily driving the price down. Finally, has anyone checked the convert agreement to see whether the holders are allowed to short the stock? Not all that glitters is gold. Bob