The discussions about current PPS are interesting but, I
posted on
May 02, 2005 04:55AM
believe, miss perhaps an important point. Basso Group reportedly took an equity position in e.Digital (someone correct me if I am way off track here). Basso is a hedge fund. Hedge funds take equity positions and then hedge that position by shorting the same stock so they balance potential loses on their equity position with a short position. They are then free to move with the market and make money regardless of the direction of PPS movement. I personally believe we have been seeing the building of Basso`s short position. Having said all this, please keep in mind that I don`t know anything about the stock market and am merely speculating for discussion`s sake. Someone who does know what they are talking about please chime in. Have a great edig week all...
Kirk