"Schwab has no shares to lend on IOMG. Does this mean that they want to make all the money on the downside, even if it goes up a little in the meantime?"
Bull:
I am surprised that Schwab couldn't find shares to short. I was able to do it via ETrade (last week at $23). Schwab is supposed to borrow from their own customers; if couldn't find any, then Schwab could borrow from other brokerage firms.
Looks like way too many IOMG shares are being shorted already. From an earlier post, currently over 26 millions shorted. This is a staggering 1 out of 5 IOMG shares shorted. Could we (the shorters) all be wrong. Unlikely!
Maybe you should talk to a Schwab broker, and try shorting IOMG again. Do it fast; the soon you short, the sooner you could make money.
Remember, it is all about earnings--future potential earnings--that will drive IOMG. If you believe IOMG can deliver on earnings, then go long. I do not believe that IOMG can deliver. It's not just Zip and Jaz, but CD-RW, DVD, LS-120, MO, SyJet, Travan, and more.
It's still a very cloudy picture with IOMG. Maybe by Q1 1997, we all will know where IOMG will be.
Phil
(If you are not shorting IOMG, you are not making money.) |
