Zeev's Turnips Patch-No Politics (ZEEV)

[Zeev Hed]

I called my broker to get him to chase some of these notes, they should be selling probably at a discount of 20% to 25%. If he can get me some, that might be a way to get (eventually and not risk free) an infinite return on money. Here is what I hope to do, let say he can get me $26,000 face value (convertible to about 1000 shares), that should cost no more than $20.800. Here come the risky part, waiting till SKX gets back to the $25 area, and then short 1000 shares "against the notes", if that is done, I should get "paid" $25,000, roughly what the notes cost me, and keep getting paid about 5.4% on the original $20.800, yet have no funds at risk at that time. That is "infinite return". Of course, I'll be at risk until SKX sees better days and the stock gets back to $25/26. A similar game can be played with CYMI if you think that in the next few years CYMI will get back above $50, and ELX also has a convert like that.

Zeev