babcock on trigger point: theage

http://business.theage.com.au/babcock-on-trigger-point-20080612-2ped.html

found this interesting part in this article.

The second story is that Babcock & Brown's founders in the US hold about 17% of the company in a convertible note, which means that could convert to equity in the event of the group hitting its $7.50 trigger point.

Most of the selling, then, is coming from existing shareholders. There is a likelihood that hedge funds will "cover'' today - or buy back their short positions if they are already short - or simply buy the stock for a bounce.


Any thoughts or comments?