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Technology Stocks : C-Cube

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To: Ed's Head who wrote (11875)3/23/1997 2:17:00 PM
From: DiViT   of 50808
 
Hey Ed, opinion please:

I've been thinking about a short squeeze off and on and how much fun it would be. Then reality set in. So far the shorts have played quite successfully with this stock. I see no reason why they would sit tight and lose out on their profits, when the tide changes for Cube.

They have been saying that VCD price reductions are hurting Cube.
OK, give them that.

They have also been saying that DVD revenue won't compensate VCD revenue loss in the first half of the year and that most the DVD revenue will be in the second half.
OK, give them that too.

So if your a smart short and you profited by believing all this what do you do with your short positions in the second half of '97?
Wouldn't you expect the other shorts to do the same?
Don't you want to be the first to cover?

It's obvious the shorts are looking ahead, so it seems to me that they won't sit tight and wait for Q3 to signal a turn around. So I'm guessing they'll start to unwind their positions this summer and we may never see a honest to goodness short squeeze.

IMHO.
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