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Technology Stocks : Creative Computers(MALL)

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To: RockyBalboa who wrote (1125)12/4/1998 4:28:00 PM
From: drakes353  Read Replies (4) of 1634
 
Christian:

One thing that might argue for a persistant discount even after UBID is widely shortable is the mismatch in the number of UBID shares availble (1.5 million) versus the number of MALL shares available (10.whatever). Even if there was a short UBID/long MALL arb available there wouldn't be enough UBID to go around. The discount could be with us for a while since there won't be any way to lock it up.

There's also the "well, the only way to short UBID at the moment is to short MALL" thing going on. That helps push it toward a discount to the discount too. That should subside once the available borrow gets used up.

drakes353
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