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To: Straight Up who wrote (5270)	2/21/1999 12:33:00 PM
From: Bob Zacks	Read Replies (1) \| Respond to of 10081

Convertibles and the hedge funds. This is how I see this deal.The hedge funds bought convertibles for the interest return and guaranteed their return by shorting to protect against any drop in value in the stock. When they convert shares they can cover by buying back their own stock.Thus having a neutral effect on the stock price.If at the end they hold on to their shares and cover they will push the price up by buying shares to cover.It would be smart to do this if GMGC is finally out from under the convertible shadow because then the institutions and others will start buying again. The key is where is future financing coming from (this is the question we all should be asking Mr. Markman).