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

To: Greg Hull who wrote (18850)	10/27/1998 11:29:00 PM
From: Eleder2020	Read Replies (1) \| Respond to of 29386

Greg-I think that as the Reg D gets vloser to the end, and if ANCR price continues to climb their is a disincentive for the RegD holders to continue shorting. They still have to replace at minimum I figure, 1.4 million shares if not more. As Ancor goes higher they will get less shares to cover their position. They probably have a good comfort zone now but shorting to many more additional shares especially if it does not knock the price per share down could potentially work against them. Georges last post and URL re-enforces this somewhat knowing that these guys are risk adverse. From that URL-Thanks George. atlasconvertiblefunds.com >>The single greatest risk for any hedge, particularly a full hedge, is a takeover of the issuing company. In this situation, the investor is forced to cover any short sales because the institutions from which the shares were borrowed are likely to tender the shares they have loaned. The risk in a takeover situation is less with a partial hedge. If the takeover price is more than the call price, the investor would recover the full cost of the hedge plus make money on the difference between the takeover and the call price on the debenture.<<< Now it is possible that these guys are completely boxed and have us fooled. Maybe Tailwind has 2.2 million shares that they converted just sitting in a safe deposit box and just never bothered to send the certificates to the institution that they borrowed from. It would still appear as 2.2 million shares in public forums but in reality it would be covered.In this case they would still have 7 million to convert. This is very unlikely though, but it is in the realm of the possible. Ed