Mercator...
I appreciate your opinion, but I have a different opinion regarding the way funds deal with convertible notes..When funds hedge these notes, which is a common practice, they do not do it by buying puts. I am not suggesting funds are initiating short positions leading into a very serious binary event. I am talking about the fact they have existing short positions dictated by their hedge (again read page 365 "More Money Than God"). Not to question your level, but I am going put more value in what Mallaby says about the matter, than you..Also..I'm not sure how you tell your broker to "collapse" your position and not have to cover your short. ( I realize this is a net zero transaction)
In the long run however I do not think this (the short squeeze issue) is of great importance, I am not predicting one..I am suggesting it is a possibility..
Finally I am trying to remember if I have ever been invested in a stock where there was a forced conversion, I am watching with a great deal of curiosity.
":>) JL
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