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Strategies & Market Trends : Shorting stocks: Broken stocks - Analysis -- Ignore unavailable to you. Want to Upgrade?

To: RockyBalboa who wrote (2048)	12/21/1998 7:07:00 AM
From: Q.	Read Replies (3) \| Respond to of 2506

Christian, re. BTIM's rights offering: <<the ratio is 20:1 here. It doesn't mean that much...>> Yes, this might be true. It just depends on how much selling, beyond the normal volume, goes on during the coupld of weeks this is in play. <<What happens if the rights are not exercised? They are simply cancelled and expire worthless?>> That's right! And these rights will trade as listed securities on nasdaq. Which brings to mind this idea: could you just short the rights on the speculation that you might get lucky? If the owner you borrow from doesn't exercise, then the rights you short will expire worthless. There was somebody on one of these threads who was short common stock that issued rights, and he reported that he was then short not only the common but also the rights. I've forgotten what the outcome was, though.