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Strategies & Market Trends : Convertible Hedge investors? -- Ignore unavailable to you. Want to Upgrade?

To: compradun who wrote (102)	3/26/1999 7:10:00 PM
From: Scott Mc	Respond to of 107

Yes they take a bit more time, but are very safe and can be a lot of fun. If you are looking for idea's, value line has a good conv publication and a 3 month trial is reasonable and some libraries carry. Investors Bus daily has a fairly comprehensive list of converts, probably quite a few other sources... Oh Yes, there are a nbr of convertible mutual funds, their annual/quarterly reports list their holdings.. Scott

To: compradun who wrote (102)	4/2/1999 6:49:00 AM
From: Ditchdigger	Read Replies (1) \| Respond to of 107

compradun,congrats on your thread, I just stumbled upon it..Perhaps you could shed some light(and lead me to where the info is) on a subject we've been discussing...An investor buys floorless debs in company xyz, which is a bulletin Board stock trading under .50. The debs are convertible at a 30% discount to the average 5 day closing price before conversion..Can (and I know it's done) they short against these debs using the debs as the colateral? Can they do this legally(I think it is legal)..how is the margin requirements etc..taken care of? Here is a post by Zeev, in reference to this subject.. exchange2000.com Can the debs be used for the purpose of shorting? Must it be done naked,and can it legally? Any input would be appreciated..TIA,DD PS: we know many of these placement are ruthless,Reg S,Reg D..But is this game being played within the bounds of the law? EXSO comes to mind, with their Reg S placement,,when conversion was called,they needed more stock than authorized and finally settled with the bandits,which leads me to believe it can be done ,legally (although, this was an offshore reg s..) Hope you can understand what I am asking...Thanks for any help you may offer..