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Technology Stocks : JMAR Technologies(JMAR) -- Ignore unavailable to you. Want to Upgrade?

To: timwa who wrote (4228)	11/28/1997 11:48:00 AM
From: Starlight	Respond to of 9695

Tim - >>>Short interest went from about 8,000 shares to about 750,000. This can be positive when the shorts have to cover.<<< Go back to my post of about a week ago about shorting "against the box". When a person is short against the box, it means they are selling "short" a stock they already own (at a lower cost basis). Then after they sell short, IF the stock drops more, they can either buy and cover the short, OR - more likely - they can deliver the lower priced stock they alreay own to cover the short. This is a "hedged" position where they can't really get hurt. If the stock goes UP after they short, they still have the lower priced stock they already own which they can cover with. My feeling is that the recent short position is from the persons who bought the JMAR private placement units recently. Those units will give them stock at a cost of $3.40/share, so they can convert and deliver that stock to cover their short position. It won't result in any NEW buying to cover. [JUST MY OPINION.] Betty