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Technology Stocks : PSIX up 26.5%, Takeover(?) -- Ignore unavailable to you. Want to Upgrade?

To: James F. Hopkins who wrote (5202)	11/3/2000 2:11:19 PM
From: Dnorman	Read Replies (1) \| Respond to of 5650

Jim, I thought they couldn't short a stock under $5. Am I misinformed on this or is their an exception on some stocks?

To: James F. Hopkins who wrote (5202)	11/3/2000 4:24:37 PM
From: KyrosL	Read Replies (1) \| Respond to of 5650

Jim, sorry to barge in here, but what you say makes no sense. Why should the bondholders want the stock to be dirt cheap? A valuable stock means that the company is healthy and the bondholders will get back their money with interest, which is what bondholders care about. When a company is teetering on the edge of bankruptcy, invariably the company's junk bonds trade up or down in concert with its stock. A company is not forced into bankruptcy by cheap stock. It is forced into bankruptcy because it can't pay its bills. What PSIX needs is a dramatic reduction of its cash burn rate, which, I understand, is exactly what it's trying to do by selling off assets and getting rid and writing off pieces of the company that burn cash. Incidentally, these actions make it more attractive to potential suitors, who don't want a mess when they take over a company. By the way, I don't think that shorts that are selling here -- if anything they are probably covering. It is institutions, who are massively abandoning the stock. No self respecting institution wants a $2 stock in its portfolio. Kyros