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To: SteveG who wrote (210)	8/25/1998 8:15:00 AM
From: Alejandro	Respond to of 1176

Steve G: Your post on shorting and the effects of same was educational. Your comment on the use of 'borrowed' shares was interesting. I understand margin accounts etc very well. However, I have never shorted in a margin acct. Matter of fact, I'm going to print your post. Thanks. In addition to the shorting etc, there are those who bought in the 40s and 30s who are kicking in stop-loss orders. As it drops, there will be some more. However, wherever it stops it will be cheap and will jump ahead again. Limtex got me to thinking about the shorters and I never thought of the stop-loss selling. ac

To: SteveG who wrote (210)	8/25/1998 9:50:00 AM
From: GVTucker	Read Replies (1) \| Respond to of 1176

Steve, re: your statement <<As far as shorts- the only shares of the 32MM float that can be shorted are those that are owned on margin. Certainly not all, and hopefully we are near the end of shortable shares.>> This is not accurate. Most mutual funds and pension funds (who almost always own shares outright, not on margin) generate a little extra income by lending their shares to shorts for a penny or so per share. This way, you can generate a little income from a stock that pays no dividend. In the institutional market, this is the place that large short sellers almost always go to in search for large blocks shares to borrow.