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Technology Stocks : C-Cube
CUBE 37.08+0.4%Dec 2 3:59 PM EST

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To: s.hamilton who wrote (13327)4/11/1997 1:59:00 AM
From: Art Ebbands   of 50808
 
For the life of me, I can't figure out why anyone would consider shorting at these prices. Please someone tell me what I'm missing?
I do a lot of shorting stocks myself but only short stocks or buy puts on those that I feel are highly overvalued. This stock price is very depressed if they're going to make anywhere near $1.80 (the concensus) this year. Tell me why they won't! It would be at fair value if they only make about a buck.
I've been trying to figure out where these 10 mil shorts are coming from. There's no way I can see most of these being naked shorts unless I'm missing something. I feel most of these must be some sort of hedged position such as shorting CUBE & buying an equal amount of ESST. It doesn't look like call postions are being used to cover the shorts.
The shorts and MM's have been controlling this stock but it can't go on forever as long as Cube keeps hanging in there. However, the shorts will keep playing & won't get scared out until a sustained upmove begins.
Buying APR 25 puts is a real crapshoot & you will need more than luck for this to work out. Will be happy to see you lose your arse on this one.
AE
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