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Technology Stocks : Mattson Technology
MTSN 3.6000.0%May 12 5:00 PM EST

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To: John Stewart who wrote (3381)6/1/2001 10:13:41 AM
From: Philip W. Dunton, Jr  Read Replies (1) of 3661
 
John, OT/KKD shorting. Be my guest. You could make a lot of money IF your timing is right. I did not say it wasn't a good short, I used it as an example of heavy shorting being on the wrong side for two years. (You see, heavy shorting is generally bullish because it creates future buying demand.) The problem with shorting KKD in my opinion is that it is a much "too obvious" short, hence the huge short interest holds it up and the resultant short squeeze causes it to rally. At some point, KKD might break down but I suspect not until the shorts give up (get their clocks cleaned). Usually, the short interest will start to dramatically decline as a prelude to the collapse in price. At any rate, I make no suggestions on KKD (long or short) but merely cite it as an example of how heavy shorting doesn't mean a stock will necessarily decline. Best regards, Phil
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