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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: Howard Feinstein who wrote (17848)	2/21/1998 11:49:00 AM
From: Mohan Marette	Read Replies (2) \| Respond to of 97611

Howard: wow that is a lot of 'shorts', I fervently hope they get squeezed soon and then we can all make some money for a change.

To: Howard Feinstein who wrote (17848)	2/21/1998 12:06:00 PM
From: Hawk	Read Replies (1) \| Respond to of 97611

Howard The large short position reflects arbitraging on the DEC deal. Thats why CPQ seemed stuck around the 30 area when the deal was announced. In effect what they do is short sell compaq and buy DEc lock in a profit on the spread. H.

To: Howard Feinstein who wrote (17848)	2/21/1998 2:36:00 PM
From: Satish C. Shah	Read Replies (1) \| Respond to of 97611

It is really not as bad as it looks. On 1/15 there were 22 mil short on CPQ. On 2/15 they became automatically 44 mil ( because of 2 for 1 split) without any one shorting an additional share. Further, picture on average volume is also little murkey because of split. If before split they were doing x # of shares for Y $ volume, suddenly, to do the Y $ volume they will have trade twice as many shares. These two items mess up the % increase in short ( in this case it shows it went up 188%, making me and others nervous that street knows some thing and I do not). Another is short interest ratio, that is # of outstanding shorts divided by average daily volume. I hope this helps. Satish By the way Stock short ratio Shares short DELL 2.5 22.61 mil GTW 4 8.4 mil INTC 2 35 mil HP 3 8.5 mil and CPQ (presplit #) less than 2 33 mil CPQ new # 3.5 65 mil