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

To: blash who wrote (4189)	6/25/1998 10:23:00 AM
From: TraderGreg	Respond to of 4783

I believe if PKGP short positions are permitted to be covered by new stock, the shorts will linger, but it won't perpetuate the situation. The old shorters will still be/should be still held to some type of time constraint. The legitimate shares of old PKGP turned in will be replaced with legitimate new stock. Holders of new stock will be trading those shares every day and old shorters will be compelled to buy them. The degree of difficulty will depend on the willingness of longs to sell. Some will hold tight, others won't...business as usual. In any event, the shorts will still have to cover. Now, as always, new shorting of the new stock will of course commence within the first minute the new stock is traded...but that's a different story. When the dust settles, all the old PKGP stock will have been replaced and there will probably be some new short position that exists...of new stock now, rather than old. Just like all the other symbols on the BB. TG

To: blash who wrote (4189)	6/25/1998 10:23:00 AM
From: John S. Baker	Read Replies (1) \| Respond to of 4783

Just playing "what if" here, but it strikes me that the naked short position will not necessarily be perpetuated as you suggest. The process of clearing out all the naked shorts in the old stock will involved the conversion of each "phantom" old share into a real new one, in order to deliver it to the shareholder's brokerage account. Any new naked shorting might then begin again, but it would have to be regenerated from scratch and probably would begin from a much higher position. And there would not be the overhanging (or underlying) floorless convertible to bolster the naked shorts. Just speculating on my part. Feel free to jump in.