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To: HerbVic who wrote (24292)	4/22/1999 4:36:00 PM
From: rhet0ric	Respond to of 213177

Why would a bond holder want to short? My understanding is that the bond holders can't simply convert their $29 bonds at a higher AAPL share price whenever they want. But they can effectively do this by shorting AAPL at a higher price. When they short, they are essentially "borrowing" their own shares (bonds) and selling them, rather than borrowing someone else's long shares. Then when the bonds are converted, they exchange their shorted shares for their converted shares. In this way they can lock in their profit at a higher value, i.e. at whatever value they shorted at. Of course, my understanding could be totally off, in which case read Eric's site instead. rhet0ric

To: HerbVic who wrote (24292)	4/22/1999 4:41:00 PM
From: J R KARY	Read Replies (1) \| Respond to of 213177

>> I can't wait to read Eric's analysis. I'm sure it will be most enlightening. << I agree . >> Why would a bond holder want to short? Especially since the conversion price of $29.205 per share has already been set. << You know there are many strategies that have been played and could yet be played with the stock before the early call on 6/1/99 . These bondholders invested millions in a shakey company for 6 % and some recovery promises due by June 2001 . I assume they were/are knowledgeable friends of AAPL and also saw a recovering stock as a further profit tool . Eric's write-up may have some interesting scenarios on the possibilities . Jim K.

To: HerbVic who wrote (24292)	4/23/1999 1:48:00 AM
From: J R KARY	Respond to of 213177

For those serious investors so inclined to study the Notes Eric will be explaining them in detail but here's one of the links: sec.gov They were issued (and amended slightly) to savy "institutional" investors . It's been years since I studied them originally as a AAPL investor and I am struck again that 19.5 mln shares are involved which can be sold before 6/1/99 . They have many trading options but little time left . The 6/1/99 Call will be registered as a amendment . Jim K. were