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To: marc chatman who wrote (34806)	1/11/1999 2:19:00 PM
From: Gary Burton	Read Replies (1) \| Respond to of 95453

Bought a small position in a laggard IO at 7.88 only 16% up from its low and below book value. who knows.

To: marc chatman who wrote (34806)	1/11/1999 2:20:00 PM
From: Big Dog	Read Replies (2) \| Respond to of 95453

WriterDog has an article just published on The Raging Bull financial web site: ragingbull.com big

To: marc chatman who wrote (34806)	1/11/1999 2:21:00 PM
From: Redman	Read Replies (1) \| Respond to of 95453

Holding period now becomes the time you hold the "original" long position--LESS-- the time you had it shorted against the box. So in other words, once the short was put in place the clock for short and long term capital gain stopped. The clock would then start again once the short position is covered. But also remember, the IRS now requires you to hold the stock for four months after you covered. So, even if you held the stock for 11 months, then shorted against the box for 5 months, then covered the short, you would still have to hold the original long position another four months, even though you are at the "long" term capital gain mark after only one month of covering short. To the IRS, the end result of this ??four month "extended" holding period after a short is covered is precisely to have people stop shorting against the box and deferring taxes. With the new strategy, you are going to have to go net long for a minimum of four months anyway, so why short against the box PERIOD to defer taxes. The only motive now to short against the box would be technical related. You may want to check the exact holding period after you cover, but I am pretty sure it is four months. I went all through this with my accountant in mid-December, and although the laws are somewhat ambiguous (as if this is the only one), this was the final determination of how the IRS was interpreting their own rules. Red