Hawaiian Hospitality Group, Inc. (HHGI)

[RSDS u308]

Here is my understanding of Scottrade with respect to selling before the new shares are paid. You dont have to "cover" unless Scottrade is paid less shares than before. Since this is a 1 to 1 merger, Scottrade should be given, 1 share of the new company for every 1 share of the old company. This way, you dont lose any shares. Now, if for some reason, they change the merger agreement(i.e. a 1 for 2 share deal), or, God forbid, a R/S happens , you would be getting less shares and thus have to buy back the deficit of shares at whatever the current price is(ouch). Make sense? If not, please give them a call and ask them. Who knows, I may be wrong, but it makes sense if you dont view it as exactly a short position. Im sort of unclear however, about if you have to pay for those new shares(however many you are short and assuming a 1 to 1 merger and no R/S) when they ultimately put them in your account, or if it's a wash. Maybe someone could call, I have bothered them enough. LOL.