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Technology Stocks : Quarterdeck: Making a Striking Comeback!

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To: dwight vickers who wrote (1083)6/27/1997 8:16:00 AM
From: Fred Levine   of 3307
 
Dwight- I agree with your analysis of the predicitive value of short sales. Obviously they represent money-where-your-mouth-is votes that the stock will go down. I am also aware of the research that correlates shorts with share price declines. That is why I wrote a "PROVIDED" proviso in my 1st note (and why you wrote "only" on yours).

In QDEK's case,IMO, the shorts have little downside profit potential as the shares have plummetted already. In addition, and I regard this as primary, if QDEK develops and sells its products even lower than projected, the shorts will accellerate the upturn of the share price. However, if there is a reduction of sales and earnings, the shorts will be correct and we'll be holding wallpaper. What I gather from this thread (including my comments) is that the products are good and sales should increase.

good investing--fred
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