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Technology Stocks : Qwest Communications (Q) (formerly QWST) -- Ignore unavailable to you. Want to Upgrade?

To: Larry Livingston who wrote (4840)	8/5/1999 1:01:00 PM
From: Alejandro	Read Replies (1) \| Respond to of 6846

I see what you mean but wouldn't all the funds holding USW have to get together on this scheme ? ac

To: Larry Livingston who wrote (4840)	8/6/1999 6:46:00 PM
From: Stu	Read Replies (2) \| Respond to of 6846

I agree that the arbitrage play (buying USW and shorting QWST) is definitely being done by a good number of players in the market, but I think that you've forgotten one thing. At some point, all the shorts will have to cover, and that squeeze will drive up the price of QWST. If the merger doesn't go through, then the shorts must cover, and if the merger does goes through, the shorts still have to cover. If you own USW, it makes sense to short QWST. But if you don't, it might be a good idea to buy some QWST at these levels. At some point, QWST gets close enough to $22 that shorting because you think that the merger will not go through becomes less profitable that the short squeeze which will definitely go through.