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Technology Stocks : Wind River going up, up, up!

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To: Allen Benn who wrote (2146)9/28/1997 1:46:00 PM
From: dylan murphy   of 10309
 
Allen

(1)Thanks for the thoughtful response (2)I don't know if professional
shorts have a target on WIND,just noticed the rising short interest
(3)I didn't mean to imply that PS was the only reason WIND might be
shorted,just one of them.

Don't take the short sellers lightly

If you or I want to short a stock,we would sell a few hundred shares,
cross fingers,and hope for the best. Professional shorts are a different breed. They sell thousands of shares and then use any tactic
to get the price down. Rumors,lies,media plants,trading techniques.
Selling begets selling. They can sometimes take it down hard and fast and other times drag it out over months.

If the shares you hold long are a small part of your portfolio you
can hopefully ride it out. If it's a large part(as has been suggested
here) you can see your net worth fall dramatically.If you own on margin,you may be forced to sell at a loss. It's a gut wrenching experience to watch an investment cut in half. I've watched some happen and been in the middle of others.

Faith in a stock gets tested in times like these. There is always the
chance they may be right. Slower growth,more competition,earnings
problems.Some stocks never come back.

In a market panic all the eloquent post and rationalizations won't
help a bit. Lots of WIND's profits are "in the future",increased
sales are "in the future" lower pe is "in the future". All the
sellers need is a catalyst.

How about this one just for fun. Bill Gates speaks to a crowd somewhere and says "I used to wake up thinking about browser market
share. Now I wake up and think about embedded computer market share."
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