WAD,
If I were short I would be producing about a "bag of dung" a day!
It's difficult to analyze this Y2K phenomenon on a fundamental basis and that's what is bothering you shorts the most. OBVIOUSLY on a fundamental basis, the Y2K issue is a no brainer short with all the hyper inflated fundamental ratios i.e. PE's etc. On a technical basis, the group as a whole continues to strengthen and push higher. Now we have VIAS returning with a breakout. Two weeks ago ALYD broke thru 12 and today hit 27. Now I see ZITL selling for almost the same price as DDIM. It's got to rattle the fundamentalists who are short. I know that most of you view ZITL as a better short than DDIM.
The questions remains WHY is this group and WHY is this stock staying strong and looking technically to move higher soon? My only answer to this has been and remains the same that enough SMART money (I'm sure that Staff is laughing at this) knows that this problem is much larger than believed and that time is running out. Once it hits the front pages and the resulting dire predictions are made, and the stocks "blow-off" then and only then will this group break.
If I am wrong in this assumption then what in hell is ZITL doing selling at $22 with absolutely nothing in fundamentals? It's got a market value approaching $400 million. DDIM is only $260 million and it at least has something going for it. I'm more than sure that DDIM will soon be reporting substantial ARDES 2K sales. If history is any judge, the good news comes right around the earnings period.
You can rant and rave all you want about the fundamentals of this group, management, insider selling, time running out (for whom?) etc., but the price action suggests higher prices. Remember this, The market will do whatever it has to do to make the greatest number of investors lose money in a particular situation. As I seem to be one of the few really bullish holders on this thread, I feel pretty good about my chances. |
