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Technology Stocks : Altaba Inc. (formerly Yahoo)
AABA 19.630.0%Nov 6 4:00 PM EST

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To: Michael who wrote (4802)12/20/1997 5:15:00 PM
From: Terence Wilson  Read Replies (2) of 27307
 
IMHO the problem with most YHOO shorters is they don't have the
guts to hang on for the long term. Everyone knows that this stock
is overvalued, but the question is, when will gravity pull this
puppy down? In the meantime, the MM's and institutions are having
lots of fun running the stock up. Those guys play a game of
squeezing the small guys on the short side and selling when Joe
Blow has over-extended himself, they then re-buy stock at lower
prices before repeating the process.

Many folks are waiting for the day when the stock collpases. This
will be their salvation. My predication is that this stock will
indeed collapse, however, when it does the short interest will be
much lower than it is today.

If you are a speculator it is far safer to be on the long side
of YHOO. This is because the huge short interest provides a large
hedge to your position- there are so many people losing money
on this stock that a free-fall will be prevented by huge short
covering. Their is money to be made short, however, the risk
/reward ratio is not good. If you do insist on being short YHOO,
only wager a fraction of your portfolio value and be prepared
to stay short for at least a year.
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