Market Gems:Stocks w/Strong Earnings and High Tech. Rank Message Board

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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank

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To: LastShadow who wrote (8589)	4/27/1998 7:50:00 PM
From: ViperChick Secret Agent 006.9	of 120523

A short squeeze works like this: A stock rises too much, like KTEL to 44, so a bunch of traders short it. The price drops to 22, and guess what, so many folks shorted it, there isn't any left. So when the shorters go to 'buy to cover' the mm's raise the price - in this case to $34 today. So if you buy early when it starts back up, you can sell at a decent profit, even thogh the stock is still only worth about $6...Anyone out there following all the short intrest plays could post one heck of a watch list. KTEL's scenario was a bit more involved than that an example of a true short squeeze they sold short the longs called in their shares because of a small float the effect was disasterous for the shorts and meeting the Reg requiring delivering within 3 days caused the tremendous surge as per David Faber on CNBC

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