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Technology Stocks : Advanced Engine Technologies (AENG) -- Ignore unavailable to you. Want to Upgrade?

To: Phil(bullrider) who wrote (815)	6/16/1998 7:27:00 PM
From: RAY BARBER	Read Replies (1) \| Respond to of 3383

I have a lot to learn about the stock market, but I believe when anyone decides to short a stock, it is simply a business transaction. As explained by a broker friend of mine here, a broker can sell a stock short, but then in a limited amount of time, must cover that short either by having the shares on hand or by purchasing the shares to cover the short position. If those shares are not readily available he must go to someone in the market who can furnish him with that amount of stock ( possibly a market maker). My friend tells me that the way the after hours trade was handled was that the folks who were short approached several firms before going to Travis, which made the inflated price legal. In other words, the folks who were short got it in the shorts, but would have done the same to Travis if they had been able to accomplish their goal. I believe you'll find that Travis does hold a lot of stock, and that he purchased much of it to thwart the short sellers. I also think it is a game between the short sellers and the market makers. It seems that in this environment, the company and the product don't have much effect on what happens, but rather what the traders do.