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

To: George Dawson who wrote (19019)	10/30/1998 5:52:00 PM
From: Eleder2020	Respond to of 29386

>>I think there is another option - sell short currently against all of your preferred shares. This is not counted in either the accumulated conversion figure or the total shares outstanding.<< Deorge-One problem with that is that you have risk. You sent me that URL that explained what the risk is. The preferred conversion is determined by price so in this end game you may end up with anywhere from 3 million to 6 million shares. You still have to cover 2 million shares short when the prefers get converted in the future. If the company gets taken out tomorrow at 10 in yourscenario(according to that URL) you have to deliver your certicates to the institution you borrowed(or sold the short to) and then you the RegD holders have a problem. The conversion rate is $8.50 on 7 million of financing. You end up with a shortfall of 1 million shares at $8.50 that you need to cover and as a Reg D holder you get turned to nuclear waste. I just think that they would be foolish to short ALL the preferred. I think they need a comfortable margin for error and they have that which is why I think the short number will be 1/2 what it was last month if not more then that.

To: George Dawson who wrote (19019)	10/30/1998 6:07:00 PM
From: Eleder2020	Respond to of 29386

>>I just tried to confirm both of these possibilities and get the current long positions and was advised that it is impractical to look for this information. In other words there is no current way to get the information that I think we need the most at this time. << I bet it is impractical- Sort of like one of us loading up a gun for them ,we aim it right at their heads and then ask if they wouldn't mind pulling the trigger.<g> George-I'm not sure what the difference is between shorting using future conversions to cover(box) and shorting the preferred shares which is what you suggest. I'm trying to figure out the distinction and I'm probably nissing something. Ed