Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Roger's 1998 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: Roger A. Babb who wrote (17806)	3/19/1999 6:56:00 PM
From: Zeev Hed	Read Replies (1) \| Respond to of 18691

Roger, actually, CTXS convertible is a master piece of good finances (on the part of the CFO not the buyers of the paper), it is as good as the the old CYRX, CYMI and few other convertibles. Priced at a valuation of close to 12-15 times book value, no interest paid until conversion (namely even the interest will be eventually paid with stock), that is essentially free money. They can go an acquire some struggling company for expensive shares (one of the reasons for the increase of authorized shares) and have the cash to turn such outfits around. I would call this financial deal a victory for the company. Is it a good short? Well, if it breaks $75, it is a better short than here, IMHO, in any event, I think that during the next two weeks there will probably be another opportunity to short it above $82 again. I think that "overvaluation" itself is not always a good reason for shorting, for a good short, you want a company in trouble which is over priced, they are not in trouble and a lot of money is flowing their way every time the stock drops 10%-20%. Zeev