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

To: Ken Richard who wrote (18490)	10/11/1998 5:00:00 PM
From: Greg Hull	Respond to of 29386

Ken, <<Wouldn't it be because the box has reached its limit, thereby also limiting the amount of shorting ?>> When I think of "the box" I think of the long position. This line in the Prospectus does not require a long position to be useful. In fact I think it eliminates the need for being long. Their ability to short depends solely on the price of the stock, specifically, the conversion price. The lower the price the more shares the Prospectus supplies them, that is, the more shares that are made available for them to sell short. Control theorists call this a "positive feedback system", though few of us would consider the effect positive (I guess Cramer would siliconinvestor.com Greg