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Strategies & Market Trends : HBCO...Hungarian Broadcast....SEC needs to halt this one -- Ignore unavailable to you. Want to Upgrade?

To: Rock_nj who wrote (2)	9/30/1998 12:48:00 PM
From: Bruce A. Thompson	Read Replies (1) \| Respond to of 31

>>>Is this a good time to short this stock?<<< Rock_nj, I am not an advocate of shorting. You have to make your own decision about that. The holders of the preferred can short against the block. This means that if they have $7MM of preferred shares, they can go into the market and short $7MM of stock and wait for the stock to crash. (Meanwhile, they are replacing their $7MM that they used to fund the preferreds) The stock could go sub $.10 at which they convert $7MM worth of stock and sell that in the market (70MM shares) diluting the common to a small fraction of its original value and making $7MM profit. (See CTYS) I wouldn't touch this stock with a 10' pole. Bruce