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Pastimes : From A to Zeev" -- SI Sacks Zeev -- Ignore unavailable to you. Want to Upgrade?

To: orkrious who wrote (592)	2/4/1999 8:35:00 AM
From: Zeev Hed	Read Replies (3) \| Respond to of 708

Jay, this convertible seems to be at a fixed price (like the CYMI issue was), whether or not the holders will hedge against a future decline depends on their perception of the current value of the company. If they think the company will continue to grow at 70% or so over the next few years, they have no major reason to hedge. If otherwise, they see a slow down in growth rate, or a major retrenchment, they may decide to hedge. You got to decide for yourself is the current price fairly represents the prospect of the company, the convertible bond does not always imply a future decline, unless of course, it is floorless, which this one is not as far as I can determine. Zeev