>>Peter - How do you that short covering hasn't begun yet?<<
James, I don't know. It's my very humble opinion that many shorts move in after
some leave. Some shorts will try to ride this out and average up. I think there was
good buying today for those who see value in Yahoo's future. Investing and trading
in high-tech is very risky and very uncertain. I think it will take weeks to make major
reductions in the short interest -- who really knows?
Peter<<<
YHOO is looking much more like AOL trading trend a few weeks ago. It took 10 days for AOL
to gain 10 points and 4 days to lose +8 points. This stock will definitely attract new
shorters as the odd, IMHO, is leanning toward a big drop. My basic question before I do a
trade is:
At 54.5 (driven up mostly by shorters covering themselve)
* will it attract new buyers ?
* will the existing buyer sell to capture profit at an all time high price
* How much this stock has been diluted from the VISA deal (known) and from
issuing new stocks to officers ( unknown )( to make them richer ) and to the
market to keep it afloat from operating expenses ( unknown )( from +.02 to -.7 )
* ~1M shares shorted for YHOO is nothing comparing to:
Worldcom WCOM 37,216,284
TeleCom A TCOMA 28,419,532
Quantum Corp QNTM 23,273,661
3Com COMS 15,675,671
Netscape NSCP 12,002,006
so I do see new shorters ( broker houses ) will drive this stock down to
low 40 where it had traded prior to releasing its bogus +.02 earning.
Fundamentally, this company offerred very little at this lofty price but
lot of questionable promises. I had made a few buck shorted AOL and if
I have to give it back to YHOO then so be it, but I really don't think so. |
