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To: Frank Z who wrote (8793)	3/25/1998 11:34:00 PM
From: Michael Collings	Read Replies (1) \| Respond to of 27307

<<3.9m/18.8m=0.2 ?) Correct me if I am wrong.>> Frank: I'll run through it one more time.... when stocks are shorted in effect they increase the float. You borrow shares from someone is who is long and you sell them to another long. So you have two people long the same shares. So you must add the shorted shares to the float because you have increased the supply of stock. OK? So add the 3.9 million shares to the 18.8 million shares and you come up with 22.7 million shares out there trading (float). Sequoia has been selling out of their shares progressively as the 5% rule allows them. As of Feb 27 they had 1.8 million shares left (out of their original 6.5 million shares). I am assuming that with the heavy volume this month they would have been able to unload the balance of their shares (of course I am also assuming they planned on selling them in the first place). If that is the case then the float would be up to 24.5 million. When the 985,000 options are exercised (if not already.... according to the annual report they are exercisable within 60 days of Feb 27) approximately 40% of that number will be used to purchase the shares at the exercise price and pay the taxes (required by law). That means the float increases again by 395,000 shares which brings us to 24.9 So my assumption is that there is a 24.9 million share float and a 3.9 million share non options related short interest (technically options related shorts are shares already sold and will not be bought back in the market). If my assumptions above are correct and I suspect they are that makes the percent of the shares short to the float now around 15.6 %. And Craig this is much lower than the percentage in prior months because the float has increased. In math, the higher the denominator the smaller the number. In the case of ZITL and IOM the percentage was closer to 27-28% short. That makes a huge difference in the ability to create a short squeeze.