Yes the company has an incentive to keep the price up so the O/S does not balloon as much, but the Note holders have incentive to drive it down as low as possible before they request a conversion. This is where the "short selling" of sub pennies stocks actually comes into play. If LAM knows they are about to get a hundred million they will short sell the stock leading into the conversion because its a relatively safe bet the stock will not move up at all with the new shares coming into market, then they cover, stock recovers a little and the next pump comes so they can sell their dirt cheap converted shares at higher prices, the process repeats until notes are gone.
Also keep in mind in stinky pinky land sometimes you have CEO's who will pay themselves with shares and are thoroughly in bed with CD vultures so they really do not care about keeping the stock up until they are interested in selling their in "lieu of salary" shares. Not that I believe John is engaged is these activities, but If I were to learn he was it should not come as a surprise.
