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Technology Stocks : Data Race (NASDAQ: RACE) NEWS! 2 voice/data/fax: ONE LINE! -- Ignore unavailable to you. Want to Upgrade?

To: MadMax who wrote (26178)	12/2/1997 9:46:00 AM
From: Marshall	Read Replies (1) \| Respond to of 33268

Max - they don't stand to make any more money with the share price down, this is not based on a set amount of shares nor does the deal carry a discount. Below $6.45 they are allowed only enough shares to equal the amount loaned. At $6.45 or above they get them at $6.45 regardless of the current share price. They would face a lot of trouble trying to unload shares with the share price down but they'd have little trouble converting and selling into a rising price. If they're guaranteed conversion at $6.45 and the stock is at $12.90 at the time they've obviously made 100% on their investment. It is for this reason that the only tricks they might play would be to help the stock up and there are some interesting ways this can be done in addition to having some inside on future news and waiting for it which could also be a possibility.