betty,
Re.Hi Ibexx, do you think we'll see some stabilization as a result?
The answer to your questions is may-be-yes or may-be-no.
If the funds which are buying are mostly growth funds, then we should see a stabilization effect, as the fund managers for these funds are usually willing to hold the stock until it reaches its prime. An example is Seligman Commun which held its semi stock portfolio through the darkiest hours of chip industry slump, and came back this year in a big way--returning more than 35% to its investors YTD.
If, however, the capital appreciation funds get their hands on RMBS, we may or may not see stabilization of Rambus share prices, as these funds are permitted to use the whole range of hedging techniques including short sell. If, indeed, this turns out to be the current scenario, I would caution the small-time traders to watch out; chances for them to get whipsawed are very high.
The changing demographics of RMBS ownership should reveal itself in the weeks/months to come.
I would venture to guess that the growing institutional sponsorship would have an overall positive effect to the long-term holders, but a possible negative effect to the odd-lot traders.
Just MHO, as always.
Ibexx |
