SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : The New QLogic (ANCR)
QLGC 16.070.0%Aug 24 5:00 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Eleder2020 who wrote (19911)12/26/1998 3:52:00 PM
From: George Dawson  Read Replies (2) of 29386
 
Ed,

I think there is some advantage to shorting in a hurry and using your profit to immediately short more stock. This causes a true death spiral effect in that you are using your profits as leverage against the stock price and it allows you to create both a huge dilution effect as well as associated profit. What appears to have prevented this from happening is that there were literally no available shares to short outside of the conversion and the conversion was scheduled to proceed in an orderly manner. You could actually study this semi-scientifically by comparing Ancor to true death spiral stocks. My guess is you would see the failed stocks as being under more pressure at the outset with a larger float and/or an uncontained conversion process. It would make sense to me that a fund that is long would sell their position, since as professional investors they would know about how the financing deal would affect the stock price before those of us less familiar.

As long as the current float is approaching the theoretical maximum number of shares post conversion - I agree that the timing of the sale is irrelevant. Do we have an official number for total shares in the float? NASDAQ shows a little over 19M.

George D.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News