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Technology Stocks : AWARE -- Ignore unavailable to you. Want to Upgrade?

To: Peace who wrote (987)	9/27/2000 4:21:41 PM
From: KHS	Respond to of 2404

Peace, Charles at Stevens needs to bring buyers to the table along with the reports. We need a big player to step up and take a 5% interest in this company. The volume alone over a few days will drive some shorts away and make a nice gain. $50,000,000 is peanuts with all the money sitting on the sidelines. Come on Charles!!!!!!! Oh, and Anton as well!!!!!!

To: Peace who wrote (987)	9/27/2000 10:09:59 PM
From: Peace	Read Replies (1) \| Respond to of 2404

Short positions. The question being raised is whether these positions are naked or covered. I would say most of these short positions are naked. There are many situations in which covered short positions are entered. One strategy is a hedge against options. Since there isnt much open interest in Aware calls this can mostly be ruled out. Another strategy is a hedge against convertibles. This is also not applicable to Aware. Another strategy involves merger arbitrage. This is not applicable either. Lastly as an offset against an ordinary long position. This strategy is used in two situations. First, to protect gains and defer taxes. I will not go into the details of this but since we have seen a huge short position for a very long time I would rule this out. Second, by those who have restrictions against selling their long position such as company employees. However, I believe that most companies prohibit their employees from shorting the company stock and I would assume the same for Aware. So I would rule this out too. Since most of these short positions are naked they have to buy the stock to exit their positions. However a squeeze is not going to be as easy as many think because a trip over 60 back in July had virtually no impact on the short interest.