There is no problem with yhoo
eventually falling back to earth.
Rather, the mm's are so ruthless, that
they may take yhoo to 100 or 200
before letting it fall. A shorter
must therefore have quite deep pockets
to avoid margin calls.
Also I do not agree that a huge short
interest necessarily is bullish. Even
if some shorts cover, others immediately
take their place, so always there are
many more long positions than the float.
I don't think all long positions are held
by the mm's, some are by people like
Peter Futerko. If you read all the trash
talk by longs in this thread, you will
understand that they are just gamblers, not
convinced investors, and surely they will
jump from the boat once it starts sinking.
So to conclude, I think that long puts on yhoo
should bring profit, without taking too much
risk, but we may have to wait for
this for a few months, maybe years.
After all, another famous manipulated stock,
prst, is only now beginning to crack, and
in the daytrader community, yhoo's mm's are
considered much more evil and manipulative
than prst's mm's. |
