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

To: Oeconomicus who wrote (12184)	7/30/1998 11:07:00 PM
From: Peter V	Read Replies (1) \| Respond to of 18691

<<<the note holders, as far as I can tell, have no warrants they can exercise and dump to start a death spiral, so they'd have to go out and borrow shares like anyone else if they want to short it.>>> This goes back to an earlier question I tried to answer. Do convertible holders short the shares they convert? Why would they do that instead of shorting first and then covering with the shares obtained from converting the warrants? And if they shorted using their own shares, they'd have to buy them back and then sell them again? I think I'm missing something here. Can you explain what you meant? Thanks

To: Oeconomicus who wrote (12184)	7/31/1998 9:38:00 AM
From: phbolton	Respond to of 18691

Bob: AND convertible: they can get 17% interest on the remainder plus the benefits of the conversion so their net gain can be quite high and since they can do the conversion in October their annualized net can be more than 100% still have to figured out (not sure if its worth it) some of the details since it looks like they actually can not convert more than about 600,000 shares (5% of the outstanding- ie they don't have to reveal who they are in an SEC filling- but can they convert a bit at a time to avoid the 5% rule???) and it appears that they get the 17% on the remaining notes: ie if convert 600,000 shares at $10 they seem to get 17% on the remaining $4 mil this looks slimier and slimier, in the conference call they stated that insider sales would end but the proxy still give insiders another hefty 2 mil in options