AI
Thursday, June 10, 2004 4:03:39 PM
Joe,
AMD management is allowed to buy back shares, so they could do so. But not "these" from the senior notes: Looking at short interest figures it is obvious that all or close to all holders of the senior notes will convert a day before AMD is allowed to buy them back.
=> Short interest figures have to be understood as covered empty sales. One reason these guys have not converted yet is that they like the interest on the notes for another 18 months. As you consider it as a hypothetical discussion I might add another consideration would be that AMD could run into trouble again next year and they could cover their empty sales even below conversion price. Hypothetically, I hope
K.
p.s: Besides Senior notes, there is dilution for the Convertibles of some 20M shares. But this only comes into the equation when the common will be priced at or above the conversion price (24 USD and change).
AMD management is allowed to buy back shares, so they could do so. But not "these" from the senior notes: Looking at short interest figures it is obvious that all or close to all holders of the senior notes will convert a day before AMD is allowed to buy them back.
=> Short interest figures have to be understood as covered empty sales. One reason these guys have not converted yet is that they like the interest on the notes for another 18 months. As you consider it as a hypothetical discussion I might add another consideration would be that AMD could run into trouble again next year and they could cover their empty sales even below conversion price. Hypothetically, I hope
K.
p.s: Besides Senior notes, there is dilution for the Convertibles of some 20M shares. But this only comes into the equation when the common will be priced at or above the conversion price (24 USD and change).
Facts are irrelevant to the emotional brain
