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Technology Stocks : CMGI What is the latest news on this stock?
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From: Arthur Tang4/26/2007 5:34:32 AM
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In a glance, we know market makers are not trained sufficiently for turn around stocks.

Turn around stocks often had a change of management, thus past history is no longer a guide for moving the stock.

There are several ways a market is made for any stock, all of them make money for the market makers. None of which is building a volume, just for commissions.

Stock has a pattern of earnings. Price is moved based on P/E ratio and actual earnings released with future guidance.

Blowoff is on hype of any small companies.

Short interests are built up for companies going bankrupt. But M&A activity may change fortunes and short squeeze can happen.

Market makers invest in the company to help build their own wealth. This is the old way of market making, and is wonderful when economy is on a steady course. No recession in sight. This type of market making requires huge cash pool and stock pool.

At this moment, market makers are still looking at CMGI as a company that might go bankrupt any time soon. It will take a while to see that CMGI customers are doing well; and CMGI is run under different management(two new appointments recently). As each quarter improves; short interests on the cheap is going to force some market makers bankrupt themselves. will Smith Barney take them over as usual?

You can only buy back short interest on profit taking by investors on turn around stocks?
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