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To: m jensen who wrote (4196)	5/25/1998 11:29:00 PM
From: Zeev Hed	Read Replies (1) \| Respond to of 6467

Mike, when you own a floorless debenture, your strategy is to be paid not just once but many times over. Thus as a floorless bandit, you will not convert but sell short against the block on rallies (and thus prevent the rallies from going too far), you can short with impunity, since you can always deliver the floorless against you short position. In practice, the weight of the shorting always keep the stock from going too far up. When it start and go down to new lows after the bandit initiates the down turn, he then go back and cover at lower prices, just to short on another day. In order not to report a large short position, these bandit could cover most of their position in the last few days before the 10th of the month (when the total short position is reported) and no one would know what happened in between. Of course, all the above is conjectural and only meant to be one of many explanation as to where is all the selling volume coming from. Zeev

To: m jensen who wrote (4196)	5/25/1998 11:36:00 PM
From: Tom McIlwain	Respond to of 6467

Mike and others: A couple of things to keep in mind about the trading volumes you see displayed on the NASDAQ. 1. The NASDAQ count both the buy and the sell as one trade. Thus on a trade of 10,000 shares, this is counted as 20,000. 10,000 for the buy and 10,000 for the sell. Pretty sleazy eh? 2. About 70% of the volumes you see on the NASDAQ can be attributed to market maker "churning", ie. market makers selling to eachother to create the illusion of volume and liquidity. Tom McIlwain