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Strategies & Market Trends : Shorting stocks: High fliers -- Ignore unavailable to you. Want to Upgrade?

To: Carl Yee who wrote (534)	9/3/1998 9:29:00 AM
From: Q.	Read Replies (1) \| Respond to of 709

Carl, re. cover target price for GTAX, the warrants are exercised at a price of $4.67. I doubt if the stock will fall to that level during the warrant call period. If it did, warrant holders would be well justified in throwing a fit and demanding that the co. extend the deadline. So I'm setting a cover limit somewhere between there and here. I think GTAX may be overvalued based on price multiples and the competitive nature of its business, but it is not a lousy company that is likely to go out of business, so I'm not planning on shorting long-term. I just want the warrant call to happen, the stock to fall accordingly, and for me to get out, all within a month if everything works right.