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To: tonyt who wrote (7521)	6/25/1998 9:29:00 AM
From: IceShark	Respond to of 164684

Lutts also promoted short squeezes by telling his subscribers not to put their stock in a margin account. I think management also fueled this by putting their stock in margin, then after it was loaned out, moving it back to a cash account and forcing a buy-in. I don't think putting shares in a cash account will do the trick. They will still be in the street name and I believe damn near every brokerage agreement transfers the right of the brokerage to borrow shares from client accounts. You need to get the shares transferred to your own name. This is a classic tool in a war between bears and bulls. I'm not sure how the free float is defined (you would think it would be shares not subject to some legal restrictions on sale such as insiders, including original venture capitalists) but if short interest is 30% in excess of float this bugger can do some wild and crazy things, as if it hasn't done a pretty good job already. -g- It means some MM's are short big time since they don't need to borrow to sell shares short. Or some insiders are loaning out their shares and I'm not sure they can do that (or would want to). Given all the permutations which could unfold, this is a mighty dangerous to play, and the option volatility premiums are so high it makes it pretty tough to make money that route, unless you are selling them. If we fell 15 points and calmed down the puts might not even change in value. Regards, DWW