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Gold/Mining/Energy : Swift Energy (SFY) -- Ignore unavailable to you. Want to Upgrade?

To: Robert T. Quasius who wrote (684)	2/28/1999 11:01:00 AM
From: Mark	Read Replies (2) \| Respond to of 1602

Folks, I've been doing some number crunching on SFY (I'll post something later). One thing I noticed during this work is that part of SFY's financing is "6.25% Convertible Subordinated Notes (2006)", which are traded. Thinking that this might have some interesting gearing, I wondered what the price might presently be, and whether they were trading at a bargain price. According to Yahoo, these (SFY6K06) are presently trading at $70-ish. Perhaps I'm not understanding this correctly, but it seems that their conversion price is $31.534, and that they will pay 6.25% each year until maturity. They can also be converted into ordinary stock at certain times. Doesn't the fact that they are trading so high suggest that quite a lot of people expect - a) SFY to be trading profitably until 2006 (and able to pay the interest) ? b) The stock to be trading at more than $70 by 2006 (or a lot sooner) ? I'm not sure that I've understood this correctly, but if I have, then a lot of people are seriously confident that the stock will be 12x higher than now within 7 years.... Hum ? Mark