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Microcap & Penny Stocks : PKGP (Packaging Plus) -- Ignore unavailable to you. Want to Upgrade?

To: Jim B who wrote (1754)	5/16/1998 11:10:00 AM
From: John B	Read Replies (1) \| Respond to of 4783

Jim, Do you think there is a possibility that the reason the SEC is there is to help PKGP round up those 93 million shares or where they came from? Is it possibility that the rumor poster on Yahoo could be a corporate or SEC fishing expedition? Thank you kindly. John

To: Jim B who wrote (1754)	5/16/1998 4:03:00 PM
From: John S. Baker	Read Replies (1) \| Respond to of 4783

Just trying to understand this thing, too... > There was a very short time frame not too long ago when ONLY 9million shares were currently outstanding and YET, 93million shares traded. How is that possible? Floorless debentures?? I don't think so... More likely a huge naked short position. < Seems to me that these two possibilities are not mutually exclusive. Try a scenario ... of course NO way to know if it's the one currently being played out. Offshore holders of floorless convertibles sell naked shorts, driving the price waaay down. These are technically naked shorts, but the holders can always convert their convertibles to cover (some of) their short positions. Possible outcome: Company goes bankrupt and shares are worthless. Holder of convertible now has a worthless security which he can write off as a loss. Plus he has all the money he received for shorting the shares which he never has to repay. This is his tax-free. A double-win for the holder of the floorless convertible. Sounds like a good deal to me. Where do I sign up <wry grin>.

To: Jim B who wrote (1754)	5/16/1998 9:17:00 PM
From: Chris O'Keefe	Read Replies (1) \| Respond to of 4783

1) There was a very short time frame not too long ago when ONLY 9million shares were currently outstanding and YET, 93million shares traded. How is that possible? Floorless debentures?? I don't think so... More likely a huge naked short position. A question on this naked short position: Are we safe in saying it's over now? I mean, if John-Doe-the-evil-shorter borrowed (illegally, of course) millions of PKGP shares at, say, .25/share, wouldn't this past week be an ideal time to cover due to all the speculation about a miracle PKGP turnaround? Talk about risk-to-reward ratio, if a shorter thinks, "Hey, PKGP might go to .01/share," I agree he would have a motive not to cover. But with the name change press release (which came out on May 12) and the big Yahoo rumor which we all knew about late Thursday (the 14th), what in heaven's name would a shorter be thinking to not have covered last Friday (the 15th)? Thoughts? --Chris