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Microcap & Penny Stocks : TSIG.com TIGI (formerly TSIG) -- Ignore unavailable to you. Want to Upgrade?

To: dennis foster who wrote (23120)	4/1/1999 9:28:00 PM
From: V$gas.Com	Read Replies (2) \| Respond to of 44908

Only one problem with this scenario here. BB stocks cannot be margined. And above all, cannot be collatorallized. Correct me if I am wrong mskihntr. V$gas.Com

To: dennis foster who wrote (23120)	4/1/1999 9:34:00 PM
From: Ditchdigger	Respond to of 44908

Dennis,great find,I was looking for Zeev's post..I believe it answered a couple of questions..If anyone has questions(seriously) Zeev is very helpful and loves discussing PP's..'nite really,DD Your post exchange2000.com PS: Jazz,you are right,it all depends on the price of the stock..

To: dennis foster who wrote (23120)	4/1/1999 10:07:00 PM
From: MskiHntr	Read Replies (4) \| Respond to of 44908

Dennis, Zeev has presented an excellent example of how a "floorless convertible" works but I do believe he is in error when he says : "What people do not understand is that the floorless piece of paper is the collateral he uses all the time, not cash, and thus unlike other shorters that need to keep 50% cash against their short, he does not even have to do that." Whenever a short position is put on there is a requirement under, I think, Reg T, that there you must have sufficient collateral in the account which can be in the form of cash or fungible securities and you must be able to borrow the shares. I will check the Reg T requirements on Monday with the credit department. In the case of TSIG's convertible they are restricted and if converted the shares are restricted under Rule 144. So you cannot use restricted shares as collateral as they are not fungible, i.e., not good delivery.