PKGP (Packaging Plus) Message Board

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Microcap & Penny Stocks : PKGP (Packaging Plus)

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To: blash who wrote (4189)	6/25/1998 10:23:00 AM
From: John S. Baker	Read Replies (1) of 4783

Just playing "what if" here, but it strikes me that the naked short position will not necessarily be perpetuated as you suggest. The process of clearing out all the naked shorts in the old stock will involved the conversion of each "phantom" old share into a real new one, in order to deliver it to the shareholder's brokerage account. Any new naked shorting might then begin again, but it would have to be regenerated from scratch and probably would begin from a much higher position. And there would not be the overhanging (or underlying) floorless convertible to bolster the naked shorts. Just speculating on my part. Feel free to jump in.

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