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Technology Stocks : The New QLogic (ANCR) -- Ignore unavailable to you. Want to Upgrade?

To: Eleder2020 who wrote (18346)	10/2/1998 1:05:00 AM
From: Kerry Lee	Read Replies (1) \| Respond to of 29386

<<Maybe they aren't interested in a big profit They get a 15%(profit) lock with extra shares as a premium(I guess you can call it interest) as part of the terms of financing with no further risk. The price they short at really doesm't matter to them . They are probably content with their 15%.>> Don't forget that "Conversion" and "Selling" do not necessarily occur on the same day. What IF: - a Reg D guy converted x amount of stock 2 weeks ago at a buck and therefore his conversion price was $0.85...then he sold into last week's rally and even sold some for $2.25-$2.375...that guy got a 3 BAGGER last week. These guys work on percentages...these days, any hedge fund that tripled its money would be very happy. As Sammy Sooser would say..."God Bless America..What a Country"... PS - my guess is that some of the Reg D guys shorted months ago at $3-5..then had the option of delivering shares ( converted at $1-1.50) OR covering the short position by actually buying the stock on the open market..then went LONG on the converted shares...Also, don't assume that all of these Reg D guys move in unison. They don't necessarily have the same goals/risk profile/timetables. PPS - regarding the ability to short unmarginable stock, the average retail investor cannot short an unmarginable stock, HOWEVER, I'm sure that exceptions apply within certain brokerages/market makers when they are dealing with large institutional clients and/or these clients hold large positions in underlying stock to act as "the box".