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

To: Craig Stevenson who wrote (18944)	10/29/1998 3:28:00 PM
From: Eleder2020	Read Replies (1) \| Respond to of 29386

>>The fact that the short interest keeps rising JUST DOESN'T MAKE SENSE to me! If the short/sell/convert theory is correct, shouldn't the short interest be going down? Just as people load up on the long side believing that the price will go up, I think the increasing short position indicates that these people are convinced that the price will drop. << Craig-These are boxed shorts and the Short intertest only indicates one thing. It tells us how much money in advance of the conversion that the Reg D holders were able to take off the table. Last quarter we saw maximum shorting for a few reasons.These guys could kill the price of Ancor and maximize their long position by increasing the dilution. Remember they have only shorted 2.2 million shares and converted about 8 million shares.Given this it is quite possible that only Citadel was the shorter and not Tailwind.These ARE JUST NOT NAKED SHORTS! They could keep shorting easily because they weren't close to being fully hedged. Now that they are approaching the end game, more then likely they will not short much more because as they only have so many more shares to convert and they would not want to be this close to the end and be fully hedged through shorting as they have to replace the shorted shares with converted shares.Short shares next month should decrease dramatically. My caveat is still in place. If the Reg D guy(s) who has been shorting say 1.6 million of the 2.2 million in shorts and he has those 1.6 million of converted shares as certificates of stock(which would cover their short) then they probably can take one more quarter of shorting us to death.It just doesn't seem likely for a bunch of reasons I've mentioned in a bunch of other posts. Craig-Yes we could see some tax selling but we have 8 million new shares priced in the 1's and they won't sell their 50% profit for the same reason. Craig-Don't Worry. Be Happy.The SHORTERS ARE NOT SHORTING BECAUSE THEY THINK THE PROSPECTS of Ancor are dim. They shorted to get their money out ahead of their conversions and to maximize dilution and their long position. The LACK OF COVERING IS NOT BECAUSE THEY think Ancor will go lower. They are Boxed. They just are waiting to convert future shares and deliver the certicates to cover their short. They don't have them yet otherwise they would cover which doesn't help or hurt the stock of Ancor. My best always --Ed