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To: Mike C2 who wrote (103937)	1/9/2004 3:45:07 PM
From: Findit	Read Replies (2) \| Respond to of 208838

Mike ZHNE is a stuckholder for me. I still like it long, but it has a long way to go before getting back to its value at the time of the merger. I will hold this one and may add if news warrants. I think 6.90 was the after merger pps. Jim

To: Mike C2 who wrote (103937)	1/9/2004 4:00:10 PM
From: Ira Player	Read Replies (1) \| Respond to of 208838

Be careful on tax treatment when you short against the box! The good old IRS rules are, of course, considerably biased toward taking more of your money. My summary based on IRS Publication 550, starting on page 51, Short Sales... irs.gov 1. Short must be closed before 30 days into the next year or it is treated as a 'constructive sale' of the long position on the date of the short.(Pay taxes earlier than planned) 2. If long position does not qualify for long term tax treatment on the date of the short sale against it, the clock is reset to the date of sale of the long position or the date the short is closed. (Makes it more difficult to get to long term tax rates...more taxes) 3. If the long position is qualified for long term capital gains treatment, losses on the short position (sell short, buy back higher) are LONG TERM losses and must be used to offset long term gains before short term gains. (Less tax savings from the losses.) 4. If the long position is qualified for long term capital gains treatment, gains on the short position are still short term gains. (Same as if not 'covered' by the long position.) The short version: If you short against a ST position, you reset the clock and loose the time accumulated on the long position. If you short against a LT position, the gains are taxed heavily and the losses offset gains lightly. A friend shorted against the box when he had just under 11 months on the clock and got screwed by this one. Take care, Ira Disclaimer: Just a tax rules junky, not an accountant...