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Technology Stocks : Wind River going up, up, up! -- Ignore unavailable to you. Want to Upgrade?

To: voop who wrote (3817)	1/11/1999 1:54:00 AM
From: Snowshoe	Read Replies (1) \| Respond to of 10309

>>notes not redeemable until Aug 2 2000<< True. But the whole point of convertible bond arbitrage is to create a hedged investment that minimizes the probability of loss over a future time period. Basically they buy the bonds and collect the interest, while shorting the stock with the intention of replacing it later when the bonds are converted. I do not necessarily agree with Mark's prediction. I just wanted to note that the share price is now hovering around the conversion price. This type of arbitrage can really distort the short interest in a stock. Last year I owned Alaska Airlines Group (ALK) while it had the highest short interest on the NYSE, due to convertible bond arbitrage. However, the stock performed well and unfortunately mine was called away due to covered call writing. -Greg