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Technology Stocks : VALENCE TECHNOLOGY (VLNC)

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To: Pallisard who wrote (19467)4/30/2000 8:32:00 PM
From: Zeev Hed  Read Replies (3) of 27311
 
Pallisard, I had the unusual joy of being on the other side of the shorts during a true short squeeze, with RMBS just barely two months ago. In that case, the short squeeze did not ensue until 30% pus of all the shares were shorted (almost 9 MM out of 25 MM outstanding, with the balance in the hand of management, one few individual investors and some major institutions). 10% of the outstanding shares being short is a nice cushion, but typically, until the short position stops increasing, or there is a real shortage of stock to short (like with CYRX three years ago), a stampede is not imminent. My experience has been that larger short positions coupled with an intrinsic fundamental shift (in the case of RMBS the igniting match was the Feb IDF) to ignite the fire is required for those guys to panic.

The way I interpret the current growing short position is that some big money has made a guess that they will win on this one.

Good luck.

Zeev
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