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

To: chester lee who wrote (1839)	10/3/1998 2:22:00 PM
From: RockyBalboa	Read Replies (1) \| Respond to of 2506

Fluffy - and misleading. The uncritical reader could misinterpret it as almost(?) $10 a share. Well, the whole package might be valued at 10, i.e. the shares and the $10.04 covered warrant, when the common is at 7 3/4 but implies a whopping three digit volatility for the warrants if you factor in the dilutive effect of the warrant if exercised. So it implies that any form of put option is embedded. It definitely takes until the selling registration is out and effective, and in the meantime a dive is anything but sure. It even may lead to a short hype in TERA to "demonstrate" the favorable terms of that deal for the co. C. I hold a small short in TERA entered at the "rig" just beyond 9. C.