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

To: George Dawson who wrote (18797)	10/25/1998 6:04:00 PM
From: Eleder2020	Read Replies (3) \| Respond to of 29386

>>I don't think you can just sell shares short and make money or in effect make money both long and short at the same time from the same share. <<< George-I think it is possible. When you convert your shares say at $1.16 you can sell them in the market last week for $1.75. You've just made money on your long position. Your short position is covered as collateral by the next future conversion. The only time you have to cover is on the very last conversion which really you don't have to cover because those shares balance each other out at $0. You could probably leave the short and the long out there indefinately.You took the money out from the very last conversion on your first short. In fact I'd go out on a limb and say that the converters short Ancor when it trends down and then sell converted shares on the open market when it trends up for a nice profit. They can make money both short and long. I would say the volitility might even benefit them. And yes they stay protected from any risk by remaining boxed on their short with future conversions. Hope this makes sense -- ED First you short your shares say at $1.25 or say even at $3(just short fewer shares) if it was done along time ago and pocket that money. Your short is covered by the future conversion as collateral. Next you convert your shares at the new conversion rate as told to us by Greg Hull at $1.16. Next we saw Ancor go to $1.75. Sell your converted(long shares) that you bought at $1.16 for $1.75(which they probably did) for a 50% profit. You made money on the short and the long. Your short is still covered by the next future conversion again as collateral. The last conversion is the only one needed to cover the original short.The last conversion was really taken out as $ as the first short so no need to even cover them since they are boxed and wo