InfoSpace.com Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : InfoSpace.com

INSP 136.61

-2.4%

Dec 5 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Goldbug Guru who started this subject	9/2/2000 2:26:28 PM
From: techreports	Read Replies (1) of 3070

Why i wouldn't short - especially tech stocks. In January, Rambus had a short interest of over 50% of the float, about 8 million of a 15 million float. In February, the daily volume wasn't more than half million, and so it would take more than 2 normal weeks to cover. I remember a quote in CNET in January from a "Wise" broker that he was telling all of this clients to short that "dog". Why anybody would short high tech stock is beyond me, and further why anybody would short a stock with such an explosive short interest already, that any positive news could ignite a rocket that I'd be forced to bankruptcy to eventually cover, is beyond all but potentially divine comprehension. Predictably with the reminder of the March PlaystationII release and Intel's grudging support in February, the mother of all short squeezes ensued. Just a glance at Rambus' chart and you'll see what i mean. This is the best recent example I'm aware of why investors should be wary of shorting, and even "warier" of shorting high tech, and even "wariest" of lemming shorting high techs with already a high short interest.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next