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Technology Stocks : ONE 2 WATCH

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From: LES READ2/14/2008 1:38:24 AM
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[t]JAGH[/t]


* JAGH in itself is a highly unprofitable company that is losing money every quarter
* The stock price has been languishing for years
* Cryptometrics, a private company agrees to a Reverse Merger with JAGH in early 2007
* Stock is speculated to have a very high amount of Naked Short Interest

Conventional practice for microcap companies to go public is with a clean shell company with no trading history. So, the big question is, why would a private company want to go public via reverse merger with a highly unprofitable company with a laughable trading history?

THE ANSWER: The only answer we can come up is that Cryptometric is banking on the fact that there is a huge short position in JAGH stock. Cryptometrics' Management are either the biggest fools Wall St. has ever encountered or Geniuses. We are laying our money on the latter. Should this prove to be true, this stock has the potential to surge up on a violent short squeeze.

The chart below already shows nice buying coming into the stock over the past few weeks. We have a nice Moving Average Crossover up with a handsome breakout to new 52 week highs. It's hard to say where a short squeeze will take a stock, but we would not rule out $10.

[t]JAGH[/t]
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