Replies to post #1828 on Spectrum Pharmaceutecals Inc (SPPI)

[antihama]

Thanks for the explanation on convertible debt. I see where you got $12.87 ($69.5M/5.4M sh) but what about the $26.7M in cash? If you reduce cash and cash equivalents on the B/S by 26.7M and you subtract 69.5M from L/T Liabilities, that's a net reduction $42.8M. Divide 42.8M by 5.4M shares and I get an equivalent of $7.93/sh...which can't be right unless the hedges make it a more painless transaction which I think is what is going on. Anyhows, the big takeaway is we wipe 69.5M from the long term liabilities section making for a stronger Balance Sheet. A stronger B/S removes blood in the water for the sharks to smell and circle around and reduces the incentive to short the stock.