If you need explanation of market making, you have to invest based on technical analysis.
Fundamental investment has many dangers of ill timing. In the long run, your investment is ok; if the company continues to meet earnings expectation. So, on this thread, we discuss how Sunw will continue to do well by grabbing service business, which customers also buy Sun hardware.
We have to worry about short interest for short term pull back. Short interest is provided by large brokerages using stocks owned by their customers, but in street name.
The truth is that every share is already owned by some one. So, you always buy borrowed stock. But large investors have to talk to market makers and wait and only buy those stock that some one wanted to sell. Then, no brokerage will try to pull back price, to buy back their borrowed stock.
Some one here, such as fund manager may have bought borrowed stock and the price pulled back immediately, to cover short interest which is probably around 49 million shares now. Was down at 30 million share last month. It is easy to see, the more short interest, the more price pulled back. At 30 million shares shorted, the price had a small nice move. |
