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Strategies & Market Trends : Floorless Preferred Stock/Debenture -- Ignore unavailable to you. Want to Upgrade?

To: drjoedoom who wrote (33)	8/10/1998 12:02:00 AM
From: Mama Bear	Read Replies (2) \| Respond to of 1438

Maybe the same guy who paid > $1 MM for 300,000 shares a week ago (who you assume is some newly rich, lottery-lucky rube) could be convinced to put up a few million more. I assumed nothing. I said that was a possibility. There is also inheritance, and a number of other ways that a person could be a market "newbie", rather than your assumption that because $1 million crossed it was a market savvy player. You also don't recognize the possibility that it was a buy to close rather than a buy to open. Yes, I misread your post vis a vis the European vs the Series F. It doesn't really matter, the series F is floorless, and I've seen the cash buyback option in almost every floorless convertible filing I've ever read. If HEC has so much cash, what the heck are they doing going to the market equivalent of loan sharks? You say this doesn't mean they have no other method of generating the cash, usually, it does. It is a fact that these things work the way Zeev has described them. It does not matter the company's "potential" or anything else, because the smart buyers stand aside until it's over, and people like me pile on creating even more selling pressure. It is the nature of the beast. You can come up with all the excuses you want, shorting floorless convertibles are some of the most reliable profits available. BTW, before you lump me into your conspiracy, I'd never heard of HEC before this thread. I will probably short some though. Barb