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Technology Stocks : PairGain Technologies

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To: serendipitymike who wrote (36163)	3/4/2000 8:18:00 PM
From: David Browning	Read Replies (1) of 36349

Here's one approach, Mike.... I caution that you must confirm with your tax adviser that this still works, I have done it in the past, but not for some time. What you do is sell short the stock you would like to sell in the future. That is, you click on "short sale" on your computerized trading and sell the same number of shares short that you have for future sale. Effectively, you will be borrowing someone else's shares and selling them "against the box" that is, against your own shares, not "naked" as in case where you have no shares of your own. Two months from now, when you are in long-term mode, you deliver your shares to cover your short position. Effective date of sale is then, not now. Only a couple of problems.... (1) you have to have a margin account to do this and enough room in your available equity for broker to be happy AND (2) if any dividends on the stock in question go ex while you are short, you will have to pay them out of pocket as the dividend owed the account you borrowed from will not be received since you have sold his shares. Better than buying puts in that far less costly. David

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