Shorting stocks: Mechanical aspects Message Board

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Strategies & Market Trends : Shorting stocks: Mechanical aspects

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To: Q. who wrote (131)	9/8/1998 11:13:00 AM
From: Ken Brown	Read Replies (1) of 172

Re: shorting rights offerings, That's a very interesting idea. I'm not familiar with CEF, and couldn't find any info on their (past?) rights offering. But the problem with SIEBR was that it never traded much above $1+, so I couldn't have shorted it anyway. But for those who can short < $5 stocks, this seems to be an interesting play. Especially (if SIEBR is any indication) when the right begins just barely in the money. The dilutive effect is probably enough to cause it to expire out of the money, and worthless. Of course, in the case of SIEB, shorting the underlying common was an equally viable play, and something I could easily do. Too bad I covered so soon. :-) Ken

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