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Biotech / Medical : XOMA. Bull or Bear? -- Ignore unavailable to you. Want to Upgrade?

To: BRAVEHEART who wrote (8544)	1/29/1999 10:41:00 AM
From: aknahow	Read Replies (1) \| Respond to of 17367

The Devil is in the details, and a rose by any other name still fits like a smelly shoe. XOMA's failure to provide the details now, stinks! Peter's observations seem on target. I might ad I think companies that issue floorless convertibles almost always rationalize that the adjustment won't kick in. It seems this issue is simply another version, of the floorless convertible. The name is changed, but if the stock drops the investors will get more shares for their money. The question is can these investors make the stock drop in order to cover any short position? XOMA claims in the past to have had provisions against short sales in its' cvp issues, but I could never find them in the S.E.C. filings. And even if I had found them I had little confidence that they really provided protection. The P III trial for Meningo should over-shadow the adjustment provisions or if it fails make their application certain. It would seem more risky to short the stock against the box, or against the stock to be received, right now, due to the pending results. This would have been true even with a floorless, but the issuance of a floorless would have had a negative impact by itself. Enough said. Don't like it. Feel there were other options.