Tuesday, October 23, 2007

Amazon tonight

With the earnings reation in AAPL, GOOG, ISRG and RIMM do you think it will be any different with Amazon (AMZN 91.29) tonight? Here's the close on the day before, and the day after the last two earnings release: 44.71 to 56.81 and 69.25 to 86.18; moves of 27% and 24% apiece.

AMZN has $240MM in convertibles, denominated in euros, (PEACS Premium Adjustable Convertible Securities-about $340MM US) that pay 6.875% and are convertible at 84.83 euros (120). Wouldn't it be ironic, if the shorts, who have hated AMZN, helped with the conversion of these PEACS via a nasty squeeze?

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