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

To: Ken Richard who wrote (18468)	10/10/1998 11:19:00 AM
From: KJ. Moy	Respond to of 29386

<<<Would not shorting the stock (insofar as their ability not to be "required" to cover) be limited by "the box" (leaving the balance of the shorts naked)? Thus, there has been a lot of talk about shorting against the box, but the box has the 5% limitation, and as such the ability to short against the box would be limited as well. Is my read on this reasonable ?>>> I believe you are correct. In other words, if a series C holder owns 700,000 shares and shorted 350,000 shares (against the box), this person can't convert anymore because the total outstanding shares are about 14M. This person already owns 5%. This person can elect to do 1. Cover the 350,000 shares in the open market and sell some so that the ownership would drop below 5%. 2. Just sell some shares. If he(she) sells more than 350,000 shares, then, he(she) would have naked shorts. Well, now, he(she) can convert to cover.