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Technology Stocks : NewCom (NWCM) -- Ignore unavailable to you. Want to Upgrade?

To: David Peterson who wrote (510)	6/23/1998 12:11:00 PM
From: Cool Hand Luke	Read Replies (1) \| Respond to of 662

To: David Peterson From: Cool Hand Luke I saw this post last week. There is nothing "apparent" about the conclusion. First, the only way the lender is going to get the NWCM stock used to collateralize the loan is if AURA defaults on the September payment - a highly doubtful proposition. They are not likely to want to give up a 1.25 million share chunk of their most profitable asset, or take the black eye of a default. Second, even in the unlikely event of a default, it is doubtful that the surrendered stock in NWCM would trade unrestricted, and therefore be deliverable against a short position. In the final analysis, the short position is not why people should be buying this Company. They should be buying it because of its excellent growth potential. The only fundamental value of the short position is that it makes the statement that roughly half the shareholders in the float think the Company will not grow. The shorts will not cover until they are certain they are wrong - at $20 a share - or certain they are right - at $5 a share or less. I think they are wrong. We shall see. Stay Cool