Euroweb International - NASDAQ: EWEB Message Board

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Technology Stocks : Euroweb International - NASDAQ: EWEB

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To: allen menglin chen who wrote (473)	1/30/2000 12:35:00 AM
From: chalu2	Read Replies (1) of 566

>>Is it any wonder the price of Euroweb had soared? It was being forced up by a short squeeze ¦ a squeeze that was making millionaires out of holders of the warrants.<< This makes no sense. The author states that prior to the run up in the shares there was essentially no short position. Then, at then end of a run up, there is a short position of 400,000+ shares. But if there was no short position at the beginning of the run up, there could be no short squeeze, and no run up because of it. The way I read these statistics is that the run, like any breathtaking run up, attracted short sellers. Ergo, we see a short position after the run up and not before. A "short squeeze" diminishes short interest rather than increases it--by definition, it causes shorts to close their positions by covering. The other things alluded to--short selling and warrant plays--are possible, but lacking in proof. KPN did its due diligence here, and is putting money into this company. They will control it soon. And the market has faith in KPN, a $42 billion market cap company. That is a positive factor the author ignores.

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