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Technology Stocks : HNC Software (HNCS) -- Ignore unavailable to you. Want to Upgrade?


To: Jon Khymn who wrote (165)11/18/1999 1:49:00 AM
From: Red Dragon  Read Replies (2) | Respond to of 226
 
I don't understand all the short positions. HNCS will most definitely fall AFTER the stock distribution, but UNTIL THEN, it should track Retek upwards in lockstep fashion.

If HNCS plunges while Retak soars, then everyone (including myself) will buy as much HNCS as we can, because we will eventually be able to trade them in for higher Retek shares. A classic arbitrage play.

What am I missing?