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

To: KJ. Moy who wrote (18487)	10/11/1998 4:47:00 PM
From: Greg Hull	Respond to of 29386

KJ, <<Agreed. However, the 5% maximum ownership rule still apply even with their net position being flat, i.e 700,000 long, 700,000 shares long. He has to cover with his long position before converting again. If Ancor becomes an illiguid stock, their scheme will not work. They will be stuck with a 5% ownership with lots of preferred shares left.>> I think we have different understandings. I think you are saying that they are shorting only because they have a long position. I am saying that they are shorting without having a long position. It is not a true naked short because they can convert and cover their short position whenever they want so long as they are not maxed out on their long position. Once again, I think it is unlikely that they are maxed out at 5%. <<May be, just may be they also want Ancor to succeed. The reason being, that is the best way for them to reap in big profit>> I'm beginning to think the same way. We have spent a lot of time bad-mouthing the preferred shareholders. It appears to me that they have not behaved as maliciously as they could. Why hasn't the price fallen below $1? While they almost certainly drove it to $1, they did not see it in their best interests to short it into the penny range, apparently. Maybe they think the world of Ancor and want it to succeed. There would be at least a couple people on the Floorless Convertible thread that would be stunned to hear of such behavior, I think. Greg