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To: Circle who wrote (37496)	1/28/1999 7:07:00 PM
From: GST	Respond to of 164684

Circle <<this offering could prove more destructive to the price of the common than a normal secondary offering>>. If they sell calls and short the stock, they are writing calls covered by the converts -- yes? -- and shorting the stock builds them a big box -- yes? So this is a hedge fund's dream come true -- yes? Does this change the dynamic of the stock near expiration?

To: Circle who wrote (37496)	1/28/1999 7:38:00 PM
From: GST	Read Replies (2) \| Respond to of 164684

Circle -- Lets say you are right, and the most profitable play on the converts is to buy them, short the stock and write calls. Lets also say that the market knew pretty quick that they can sell these things -- which suggests they are not exactly playing the retail market. Which big players would buy in? Which ones cannot because of restrictions on the games they can play? Are these converts tailor made for hedge funds? (The thought of players leveraged ten to one buying these converts to play them as you suggest brings a smile to my lips just because it is so nasty).