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

To: Andrew Shih who wrote (5680)	2/28/1998 2:48:00 PM
From: james h. snyder	Read Replies (1) \| Respond to of 7685

i don't think an individual investor can short a stock that is under $5. MM's can and do strangle a company that moves under $5 with real shares or "vapor shares" (picked that one up on another thread). so the shorts, imo, came in at higher levels and want to keep beating on syqt. please correct me if i am wrong. j

To: Andrew Shih who wrote (5680)	2/28/1998 3:01:00 PM
From: Michael Coley	Respond to of 7685

RE: SYQT Shorts? >> Well, I'd wager that most brokerage firms wouldn't allow new shorts of any $2-3 stock. Thus, many of the shorts are from much higher levels. << You're correct about brokers not allowing shorts of low price stocks. One of my brokerage accounts says "no" and the other says "with special written permission only". Another possibility that you're overlooking is that the owners of the preferred stock and warrants are shorting "against the box" to hedge their position. I think that this is far more likely. In fact, if you look at the latest S-3/A (2/25/98), five of the fourteen companies filing to sell SYQT shares are selling more common stock than they currently own. - Michael Coley - wwol.com