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Technology Stocks : The New QLogic (ANCR)

QLGC 16.07

0.0%

Aug 24 5:00 PM EST

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To: Eleder2020 who wrote (18793)	10/25/1998 11:13:00 AM
From: George Dawson	Read Replies (1) of 29386

Ed, To make money shorting don't you always have to cover to close out the positions? I can see how you can develop a short position, especially an increasing one by essentially borrowing those shares against future converted shares, but I don't think you can just sell shares short and make money or in effect make money both long and short at the same time from the same share. I think the short position, whether standard or shorted against the box still needs to be covered. It seems to me from what has been discussed that anyone with a hedged position like this has an advantage over everyone else in that: 1. They can short a stock that nobody else can and develop that position by borrowing against future shares. 2. They can hedge this position by shorting against the box or cover it with either future converted shares or inexpensive shares bought on the open market. The hedged position can be unwound the same way. This is speculation on my part, but it also seems to explain the dynamics of the stock price and volume at this time. George D.

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