Gerald; RE > I think much of the shorted CPQ is probably DEC shareholders who intend to use their CPQ shares to close their short positions. << that some bought DEC ..and shorted CPQ is a likley
play..but a risky one. No matter how people think it's in the
bag just the way it was spelled out..I've seen to many deals
re-negotiated to trust that. Lots of stuff is planed behind closed
doors and more than once people who jumped the gun have been
burned. Looking for something for nothing is a good way to fall
into a trap. Been there done that.
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Both these stocks are subject to some wild manipulations till
things are final..If any one is betting one way or the other
they will likley not get in much troble if they did not go
on margin..if they went on margin then a lot could happen to
cause them problems they never counted on.
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I guess the worst being they have to wait to get CPQ stock to
cover..who ever lent out that stock can call it back any time
they want, how will they feel if the broker says hey.."I got
to buy you in"..even if they are not on margin now..that could
put them there in a heart beat before they are ready for it,
and if they don't have some reserves..well I hope they didn't
pay to much for DEC..as they could get in a crack and have to
sell some of that to cover CPQ ...if you sell what is not yours
you better have some cover more than just the hope you won't
have to do it before the deal is done..there are sharks in this
game and they feed on greed, fear, and any weakness they see.
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If I were short naked waiting on cpq shares to cover with I'd
at least be getting me some calls.
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AS for the ones bought DEC , but shorted CPQ aginst the box..
I figure they done covered..and have made out good..and will
likely plow the profits right back in. Only by getting CPQ
back up do they realize the gains they want, but a lot can
happen between now and payday. There has in the past been some
fund mangers and institutions really stung bad with the idea
they could buy one short the other..the amount they can go on
margin is very limited..and if any did they can bet someone is
looking to see if they can be squezzed one way or another..
it's cut throat on the high end, and who has power ?
So mr x thoght he was cute..we will go aginst the box on Dec
push CPQ up..force him on margin till he has to sell Dec..
then cover DEC , call in our CPQ and then go aginst the box on
it and wipesaw him to pieces..the ones who had the resorces
to hold both stocks..and short aginst the box have the power
to pick off speculators who tried it on a shoe string
both left and right, I've seen it before.
Jim
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