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Technology Stocks : MRV Communications (MRVC) opinions? -- Ignore unavailable to you. Want to Upgrade?

To: Sector Investor who wrote (17905)	1/4/2000 12:16:00 AM
From: George Dawson	Respond to of 42804

Sector, I think you have to consider that this short interest if held by funds may not be in margin accounts and the only compelling reason to cover is a clear bullish trend where they can't recoup funds by doubling up the short position. The mechanics of reporting short interest also prevents us from knowing what really happens from day to day. It may be a more dynamic situation than it seems. George D.

To: Sector Investor who wrote (17905)	1/4/2000 12:25:00 AM
From: James Calladine	Read Replies (1) \| Respond to of 42804

SHORT POSITIONS: I have not followed the dialog on the convertible debentures very carefully, but if I understand it correctly debenture holders who decide to short the stock can do so relatively freely since they know they can cover the short by conversion at the conversion price ($27.50 or so). If this is a correct understanding, then such a short holder would not be under any pressure to cover based on actual market conditions. Their only interest would be in initiating the short position some place north of the conversion price. If this understanding is correct, and the substantial # of shares short is significantly accounted for by such debenture holders, we would not necessarily expect the short position to decline until the final date for conversion was reached. Comments? Best wishes, Jim