Chinmoy: I agree with you in part and here is my reasoning why.
JP Morgan analyst drops earnings expectations just a little while ago, not to mention we have all been contemplating exactly how low Q3 numbers are going to be -- seems like a recipe for buying put contracts to me if I ever heard one, another point for the bears. One big problem, however -- the stock price doesn't drop. A sound indication that poor Q3 performance was already built into the stock price and that the stock is no longer ahead of itself -- we've hit the bottom spread.
Suddenly, we get what I believe is what a majority of folks think to be solid good news - this a.m.'s news release; that, together with triple witching tomorrow and the fact that the bad news didn't drop the stock any more, are squeezing the shorts my friends.
I believe the short squeeze will definitely continue into tomorrow but note there will be some profit takers which may hinder the potential for a dramatic rise like we've seem in the past; either way there will be a rise tomorrow, slight or tremendous is the question.
The other question is how long the squeeze play will last in terms of days because we are approaching the Q3 announcement date of October 8 and I expect this may have an impact on the continuation of the squeeze.
Let's also not forget the folks at IO have been larsterful at moving news releases, their timing is often well caculated and I;m sure we'll see a number of other releases in the days preceeding the Q3 announcement, which could further add to the aqeeze play and make it last past tomorrow's triple witching expirations.
Lastly, to John C. Hom -- good to see you back, it's been a while. Hope you held on like some of us "idiots" <-- remember those days?
How's yous position in Ballard, still holding? Hey, check out Goldstake (I think it's GXP on the TSE), another Bre-X in the making, talk to your broker and/or go to the Canada News Wire site to access their 1996 news releases, they're exploring in Indonesia and their stock saw a jumpp this week from $1.30 to an intraday high of $4.49 (same day) -- ggod for your RRSP investments.
Regards to all,
Erik J. Lupien |
