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Technology Stocks : Ascend Communications (ASND)
ASND 206.63-4.0%3:49 PM EST
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To: Kumar Nathan who wrote (10442)9/3/1997 3:35:00 PM
From: Jeffery E. Forrest   of 61433
 
If you have access to the CramerBerkowitz site thestreet.com
Check out the article about why short interest on a stock might not mean much. It's a good read.

I for one will NEVER count on a short squeeze. It's like the old rule about buying on takeover rumors. Neither strategy works.

The bulk of the shorts more than likely got out at the 40-42 dollar range.

Shorting it above 45 was a good strategy, but not covering that short at 40-42 would be a HUGE gamble. The risk/reward ratio is just TOO skewed.

40 is an EXCELLENT support level. No way this pup is gonna CLOSE under 40 unless some unforseen catastophic event were to happen. (I've been accumulating in the 40-41 range and WAS hoping for an intraday price of 38ish, but it doesn't look likely)

I remember when the IOMG thread was salivating over a much-hoopla'ed shortsqueeze about a year ago. It had just run to 26-27 and according to the IOM thread was gonna cause "the mother of all short squeezes".
It never happened.
IOMG remained in a trading range and is STILL under $30.

The only time I've seen a squeeze work well is with a small float stock (Rambus for example).
ASND simply has too many shares and too much liquidity to see much of a pop due to shortcovering.

That said, I'd LOVE to be wrong.<GG>

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