Ken and other CDRD sufferers:
Ken's right here, but it looks painful.
As of 9/97, 1,436,730 shares short. (If anyone has more recent numbers, cough'em up) and at about 90,000 average volume, that makes about 16 days to cover. Volume today very high- about a half million shares-, most of which I suspect are margin covers. Yesterday's volume 115,000,- the beginning, of Da Big Squeeze.
Assume there are about a million shorts who might cover. The period from the 3rd to the 7th was also a big volume period, and some shorts clearly covered then. How many is pure guestimation, but another half million shares were traded then on a crap stock--- and the actual TYPICAL trading volume (Mode, not average) is about 50,000.
Let's guess again, and say about half the short covering has occurred, and moved the stock about 2-1/2 bucks. Bad. A lot of more covering to come, and could well be a couple more bucks in this pig. Longs, I'd wait for a couple bucks more and bail, since the thing must still pay the piper. Shorts, trot out the margin dough. Myself included.
We need someone who can call Merrill-Lynch, and act dumb, and see how seriously they are flogging this dog. Both short and long players need to know this. Anyone got a full-sevice account with M-L?
I have one contact to call, but a long shot.
Lesson here? Several.
--Story stock, (Scotty, beam me down my CD Radio receiver, willya?) --relatively small float
--BIG short interest. This is an invitation to an organized short lynching, and I shoulda known, but the fundamentals and "business plan", the chances of revenues to cover the ball game just look SO BAD.
Idiot.
Jim
PS Sheesh! What a pig! |
