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

To: George Dawson who wrote (19565)	11/25/1998 11:52:00 PM
From: Greg Hull	Read Replies (2) \| Respond to of 29386

George, Three weeks ago I expected to see a drastic reduction in the November short position. Then the heavy volume / price rise hit the last week of the November period. I did not know what to expect. In the first two weeks of November 200 preferred shares were converted, releasing approx. 1.7M common shares. How many would be used to cover short positions, how many would be sold long, and how many additional shares would be sold short? It now appears that the net short reduction (shares covered-new short sales) was about 400K shares from the middle of October to the middle of November. I suspect we would have seen a greater reduction had the buying spree started a week later. This strength offered another great opportunity for selling. I do not know how the decision is made whether to sell long or to sell short. Perhaps individual preference. In some sense I did not care whether the short position declined this month because it seemed inevitable, if not this month then next. I am happy to see the decline now and expect to see a greater decline when the December figures are available. I think the ability of the preferred shares to have a significant impact is over. I think the selling pressure we saw this week was from red-blooded common shareholders, not the actions of the preferred shareholders that we saw a few months ago. Greg