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Technology Stocks : Hummingbird Comm. (HUMC)

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To: andrew who wrote (1674)7/23/1998 11:55:00 PM
From: Tom W.  Read Replies (1) of 2018
 
Andrew:

I wouldn't worry too much about the price of the stock. The p/e can only fall so far before investors realize that the stock is undervalued. I am, however, wondering why the stock continues to be so heavily shorted at this low stock price.

The Canadian dollar isn't doing too badly on the international markets (We've been keeping pretty even with the Swiss Franc). The problem is that the American dollar is doing really well. If the Japanese economy tanks, expect a massive redemption of leveraged U.S. investments by the Japanese. If this happens, the U.S dollar will plummet and so will overvalued U.S. stocks.

Tom W.
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