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Technology Stocks : The New QLogic (ANCR)
QLGC 16.070.0%Aug 24 5:00 PM EST
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To: Greg Hull who wrote (18483)10/11/1998 1:45:00 AM
From: George Dawson  Read Replies (1) of 29386
 
"In a normal situation short selling is limited by the ability to borrow shares. These
shares are owned by other people and held in accounts that allow borrowing. I could
not possibly sell short more shares than are currently outstanding, since this is the
maximum number of shares that could possibly be in these accounts. Most often the
shares available for shorting is significantly less than the number outstanding."

Greg,

Very well put. I have only two things to add:

1. We average investors can't short right now because we are also limited by brokers who will not allow us to short an unmarginable stock.

2. I have not been able to clarify the rules on shorting small cap low priced stocks. I heard and posted that there may have been an SEC or NASDAQ rule limiting the amount of shares of Ancor available for shorting earlier this summer. I think I would need to retain a specialized securities lawyer to figure out whether this was true or not. Nobody has been able to confirm or deny whether these rules exist - again for the average investor.

Cramer was quoted earlier this summer saying that the longs should thank the shorts for making a market where we can buy the stock. I guess in our situation we should be very thankful.

George D.
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