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To: Knighty Tin who wrote (30297)	7/28/1998 1:43:00 AM
From: PaperChase	Read Replies (1) of 132070

MB. I trade a stock called ADC Telecommunications (ADCT) and at the moment I do not own it. In the last conference call when management was asked about their recent announcement of a share repurchase, the company said it is going to "repurchase shares synthetically through the use of an equity collar arrangement". What does this really mean? I figured it meant they were going to play in their own options yet the options volume hasn't been unusually high. What is most confusing is the change in ADCT's short interest during the past month relative to it's total trading volume. The Nasdaq trading volume for ADCT was about 40 million during the past month and the short interest increased by 16 million. Since the Nasdaq volume is double counting, then the number of shares traded was about 20 million. So am I to assume that 16 out of 20 shares sold last month were short sales? It doesn't seem to make sense. So I'm thinking that the short sales might have something to do with ADCT's "synthetic position" but I am clueless as to why. Thanks for your help!

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