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Biotech / Medical : Pharmos (PARS) -- Ignore unavailable to you. Want to Upgrade?

To: Omer Shvili who wrote (583)	3/2/1999 8:31:00 AM
From: LLCF	Read Replies (1) \| Respond to of 1386

Yes, we essentially agree... however, as to the arbitrage: <I still think that CC has a large short position, which will be covered when the preferred is converted.> I disagree here... the fixed strike price is something like 2.5 (from last summer)... these guys do not want to use this strike price for obvious reasons (the floating strike price is around 1.25 today right?). So as far as CC is concerned (IMO) they would never hold a large short position risking a stock gap and raising their strike price and forcing conversion.... IMO they have to "keep some powder dry" (ie. have more stock to sell to manipulate the stock) or the whole idea behind this security doesn't work. The way they make their homerun is by having a weak market and hoping for natural weakness in the stock into which they manipulate the closings lower if possible, then if possible blast it down as low as possible for a couple days hence getting a great strike price and converting that day... otherwise they can try and stay on the offer side... make sure the stock closes below their average sale price that day and convert at night if they get any decent shorts off. <Hedge funds love these kind of situations.> Yea, who wouldn't!!?? DAK