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

To: Kevin J. Koons who wrote (4935)	1/31/1998 11:26:00 AM
From: Dave Swanson	Respond to of 9695

Immediate, guaranteed profit.

To: Kevin J. Koons who wrote (4935)	1/31/1998 4:29:00 PM
From: Starlight	Read Replies (2) \| Respond to of 9695

Kevin: >>>Why would a sophisticated investor put up millions of dollars of new cash in a micro-cap situation and immediately short the position?<<< It's called "shorting against the box" and for the Swiss, it was a "locked in" profit. The stock was about 4 1/2 (if I recall correctly) when the shorting began. The Swiss got their stock for $3.40/share. So if they sold at 4 to 4 1/2, and THE STOCK HADN'T DROPPED, they still could have covered their short with the stock they got at $3.40 and made a nice profit. As is was, the stock dropped, so maybe they didn't have to use their private placement stock to cover. But in any case, they already HAD stock to cover their short, so it was a no risk deal. We discussed this in detail when the shorting was done. Go back in the archives about 6 weeks or so and read the notes. Betty