Virata and Westell, another connection? Get this, yesterday Cramer (TheStreet.com) noted:
<< Buying the Rumor 8/16/00 1:22 p.m. EDT
Some outfit by the name of Frost Brothers is apparently raiding down Virata (VRTA:Nasdaq) with some negative story. I know that business is strong, so we are buying the raid. Got to buy them when you can, not when you have to.
Disclosure: Long Virata. >>
And guess what: the 'takedown' on WSTL yesterday commenced with BTRD, but much of the push came through FRSI... That's right, Frost Securities. FRSI sat on the ask much of the day, with some help from INCA. Today, FRSI sold and held the line again, until they got knocked up from 16 and then 16'1 and higher.
The scramble up near the end was obvious short-covering: INCA, REDI, SUSQ, ISLD, et al. Think some of them calmed each other and quit fighting for shares. Makes for a real 'prisoner's dilemma,' as a friend noted: each one wants to cover their own shorts and get out, but they have a loose coalition of compatriots... at some point, it degenerates into every man for himself. Today, it was controlled, with some retail traders and MMs giving up from the ask, but when neither of those would, then INCA would sit up there and let the shorts each take a whack from him in turn. Like a mother bird feeding her young...
We are more likely to be trending up from here, with occasional trading traps for short-termers. |
