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

To: Stu who wrote (4850)	8/6/1999 10:28:00 PM
From: Larry Livingston	Read Replies (1) \| Respond to of 6846

I'm in complete agreement, once the stock moves up, it should accelerate through the collar as the higher the price the less dilutive the deal is to QWST shareholders, furthermore everyone who hedged their US West stock will want to cover to lock in their gains. The move could be quite rapid, particularly if the sector recovers. I think the recent bottom that we have seen may well be due to some short covering. Should the deal be called of, there would be a short squeeze. Ironically this possibility may ensure that the deal happens. Depending on how much US West stock is hedged, there could be a significant portion of shareholders who would vote in favor of the merger, to protect the short side of their hedged positions. It would be interesting to know how much QWST is shorted. The problem is most data is too old to be of use.

To: Stu who wrote (4850)	8/9/1999 12:14:00 AM
From: Lazarus Vekiarides	Respond to of 6846

Hi Stu, 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. I used to think the same way... In reality, the pop would occur if the deal doesn't go though. If it goes through, then the shorts would cover with their USW shares which convert to QWST shares at some date. In fact, if you think the deal will go through and you like the prospects of the combined companies, then buying some USW shares might make sense. One more interesting phenomenon: If the market thinks that the deal will happen, you will find that it will be impossible to short QWST because the arbs will scoop up every single shortable share they can find. GBLX-FRO is an example of this. Laz