Leap Wireless International (LWIN) Message Board

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Technology Stocks : Leap Wireless International (LWIN)

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To: Jeff Vayda who wrote (80)	9/29/1998 3:22:00 PM
From: JGoren	Read Replies (1) of 2737

The runup on the first day of trading after distribution was probably caused by the shorts. My understanding is that the shorts have to pay dividends to the owners of the stock they have borrowed, so the shorts had to get Leap shares, thereby running the price way up. (If anyone has a better understanding of this, please feel free to explain better than I have.) Since then the shares have gone down every day and now are at the price the company predicted would be the value on distribution. Unfortunately, the long term holders will end up with a bigger tax bill.

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