Wind River going up, up, up! Message Board

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Technology Stocks : Wind River going up, up, up!

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To: dylan murphy who wrote (2129)	9/24/1997 10:05:00 PM
From: Don Lloyd	of 10309

dylan,<<This is the type of situtation professional short sellers love to exploit. With the recent increase in short interest, the next few months may be rough for WIND holders.>> . My impression of the effects of short sellers seems to differ from yours, although I'm not convinced that my impression is correct. . I would expect that short sellers tend to sell short after stock run-ups and then to cover (buy) on the pullbacks. Both of these actions tend to decrease the price range of the stock and add stability. In the case where short sellers find that they have sold too early, their attempts to buy back the stock to limit losses often lead to a rapid price rise, known as a short covering rally. The presence of short interest is normally thought to provide support to the stock in the form of potential buying power. . OTOH, you may be correct in cases where the short sellers are not content to wait for and take their profits, but rather float negative rumours to try to panic the stock holders into selling into a dropping market. . Regards, Don

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