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Microcap & Penny Stocks : Tech Squared (TSQD)- Internet Commerce -- Ignore unavailable to you. Want to Upgrade?

To: M. Frank Greiffenstein who wrote (2095)	8/12/1998 12:05:00 PM
From: CYBERKEN	Respond to of 2752

I think a lot of recent TSQD investors are running to DRIV, since that was their main interest, without regard for the differential. If that is the case it would suggest the downward pressure on TSQD vis a vis DRIV is a very short term phenomenon. IMO, DRIV is significantly undervalued at 12 and change. When it moves toward full value, it will bring TSQD along. Incidently, I can see dropping the .3 a few basis points for future dilution in TSQD, but the .18 has no apparent basis at all.

To: M. Frank Greiffenstein who wrote (2095)	8/12/1998 1:12:00 PM
From: Sigmund	Read Replies (1) \| Respond to of 2752

<<<< The absence of shorting ability is not necessary to meet the conditions for arbitrage. Shorting only makes the arbitrage volatile. <<<< No Doc, you are totally incorrect on this. If the spread between TSQD and DRIV were too low, i.e. if TSQD was overpriced, people could buy DRIV to reinstitue the correct spread but DRIV is the larger element (market cap) and will trade more in its own right. People who owned TSQD could and would sell it, but arbitragers would not be able to participate (shorting TSQD) unless they were MM's or others able to short (Canadians perhaps?). This makes the market less able to adapt which increases volatility rather than reduces it.