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Strategies & Market Trends : Shorting stocks: Broken stocks - Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Carl Yee who wrote (986)	4/6/1998 11:31:00 AM
From: drakes353	Respond to of 2506

Hey Carl: I'm missing the PNDA fun on this go 'round. Too much other stuff going on. HAYZ apparently has come to an agreement with their convert holders. Just issued a press release: Hayes Corporation Enters Into Memorandum of Agreement With 6% Preferred Shareholders ATLANTA, April 6 /PRNewswire/ -- Hayes Corporation (Nasdaq: HAYZ - news) announced today that it has signed a Memorandum of Agreement with all of the holders of its 6% Convertible Preferred Stock relating to the modification of the terms of their Preferred Stock. The contemplated modifications provide for, among other terms and restrictions, an upper limit to the dilution which can be created by the 6% Convertible Preferred Stock. The specific terms of the Memorandum of Agreement have been withheld pending the signing of a mutually acceptable definitive modification agreement. While all the parties have entered into the Memorandum of Agreement, there can be no assurance that the modifications to the terms of the 6% Convertible Preferred Stock will be successfully concluded. The Standstill Agreement between Hayes Corporation and the holders of the 6% Convertible Preferred Stock has been extended to April 12, 1998, to provide time to prepare the documents required by the Memorandum of Agreement. Under the Standstill Agreement the holders of the 6% Convertible Preferred Stock have agreed not to engage in any sales or short sales of the Company's common stock and will not convert any shares of the 6% Preferred Stock, except to cover pre-existing short positions. Not much meat on the bone, guess I'll have to wait for 4/12....hopefully they will put out an 8-K on this today. Capping the upper limit to the potential dilution ain't that big a deal since the volume is so low. Even a hundred thousand on the sell side is gonna knock this stock down below $5. The way-ay-ting is the har-dest part. drakes353 PS: Shorted PRST this AM @ $14.75....looks like I shoulda shorted more. On a long term chart it doesn't look like there is anything resembling support until around $8.