Spansion Inc. Message Board

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Technology Stocks : Spansion Inc.

CY 23.82

0.0%

Apr 16 5:00 PM EST

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From: bobs10	4/4/2008 1:08:38 PM
	of 4590

Another interesting day for the stock. As I said the other day the winner of these battles of attrition are always the best funded party. The shorts tried defending $3.0 this morning, but when that didn't work they tried ignoring SPSN and that worked even less well. The buyers obviously have had a game plan. In fact both parties did, but it appears that the shorts had a little less resolve/funding compared to the buyers. What we're seeing now is the other side of the short selling that drug the stock into the price gutter. The buyers clearly waited until the stock price settled at its nadir to act. In fact they may have even been short the stock to get it to where they wanted. When the buying began, the plan was to drive the price up to the point where the shorts would have to defend($3.0). Then they just sat on the price and bought up the shares the shorts sold. I doubt that they got many other shares other than the day traders. I thought the process would have lasted a little longer, but evidently the shorts saw the handwriting on the wall this morning and threw in the towel, at least temporarily. With the shorts not selling the buyers had little recourse but to raise the price. This again was calculated to get the shorts selling again. This cat and mouse action is probably far from over as it looks like the buyers are backing off from the highs as the shorts refuse to sell. Some of the price rise may have been shorts covering. I'm not sure how far the buyers are willing to push the shorts to get them either selling or covering but I expect a gradual up trend for awhile. Overall the buyers seem very well funded, better than the shorts at this point, and they seem intent on putting pressure on the shorts until they capitulate. I wouldn't read too much into the recent price action as this is probably just another muscle play by a Mafioso group and doesn't necessarily indicate anything about how long the buyers will hold their shares.

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