Rambus (RMBS) - Eagle or Penguin Message Board

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Technology Stocks : Rambus (RMBS) - Eagle or Penguin

RMBS 94.82

+2.7%

Nov 26 3:59 PM EST

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To: Jdaasoc who wrote (36118)	12/30/1999 11:55:00 PM
From: Dave B	Read Replies (2) of 93625

John, Those 9 mil shorts are not going to close their position until RMBS retests some of the support levels of pre-Intel annointment era. I don't understand the "short" mentality at all so my confidence in the following proposal is low, but here's another scenario: I would guess that being short is a very short-term mindset. You don't short a company expecting to stay short for the next 5 years. So if it's short term, at some point you have to decide to take your profits. Now we've been trading flat for a couple of weeks, bottoming out at 68-70. If I was a short, I'd figure I've probably made enough for now -- it doesn't seem to be dropping much more in the short term. So why not buy this position back and use my capital to short something else? I can always short RMBS again after it skyrockets. However, I'd rather wait until after the first of the year to take my gains so we need to keep it down for now. There was even a little blip yesterday that was beaten back which feels to me like they're just trying to hold it down until after the start of the New Year (surely it wasn't new Shorts thinking it's about to tank!). So I'm guessing a run-up after the 1st as at least some of the shorts take their profits and move on to something else that's going down, down, down. I have no prediction on whether it will be a real squeeze, or just a small jump up which will then be pounced on by more Shorts. BWDIK. Again, that mentality is foreign to me. Dave p.s. Don -- We were in Monterey all day; I'll get you some numbers tomorrow. The prize for the winner is far too exciting to not spend at least a little time putting it through my econometric models to develop the best guess that I possibly can <VBG>.

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