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Technology Stocks : MRV Communications (MRVC) opinions? -- Ignore unavailable to you. Want to Upgrade?

To: Phil Rosten who wrote (11521)	12/24/1998 8:09:00 AM
From: rascalbythesea	Read Replies (1) \| Respond to of 42804

>>>> Don't worry about the bond holders, they are making out like bandits on this deal. These guys would have shorted the stock as insurance, and then covered when they sold the bonds for a profit of aprox. $7.5 million. Plus the $5.3 Million from the bond sale, and the 2.5% interest for 6 months, gives them a cool 30% profit for six months.<<<< Good morning Phil & happy holidays...There was about 3 million shares short before the note issue became public, there is still 3 million shares short as of November. To cover the note issue, they would have had to short an additional 3 1/2 to 4 million shares. Had the stock gone up in price (as opposite of up in flames) They would have lost the difference in price from around 22 where they would have gone short to $27 where the conversion rights kick in (the reason for buying a 5% note in the first place). So I have a problem understanding why they would short the stock and why the additional short position did not appear. btb