Berkley Bear Economists are wrong as often as right. I think the key word in the last sentence is Bear.
Ah yes, Goldilocks Cymer has met the three Bears - but, the jury has yet to deliver a definitive verdict as to whether the market is too hot, too cold or just right.
Certainly on the surface of things it appears that Mr. Master Of The Universe 4 Million Shares Short In 60 Days Regardless Of Price Man has eaten everyone's porridge. It is hard to argue with someone with the muscle to break all the furniture in the house while trudging around wherever he wishes until finding just the right bed upstairs, whereupon he adds insult to injury by falling asleep.
Before we praise his prescience too greatly, however, it might behoove investors to peer a little deeper into the actual reality of the situation. Clearly, the PC market predicts to remain solid. Also, it is troubling that the overall general market seems to be holding up in a quite solid fashion despite all of the joke journalism and sporadic weak earnings to the contrary. Amat, Intel, Compaq all refuse to go down like the little Goldy has and that is always a bothersome worry signal for those Bears. It makes it darn right hard to enjoy the porridge and/or sleep soundly because of it. The rest of the market should be confirming the move, but, it isn't.
Granny Greenspan certainly admits that there is plenty of room on the downside for interest rates and that possibility makes it downright uncomfortable for a Bear to operate. Substantial derivative strategy risk seems also to be swirling overhead. Triple witch Friday looms and promises no end of fun and games albeit at great cost.
With $43 million of stock repurchases left to be accomplished by Company management that translates into over 5 million shares at today's price. 5 million shares would remove all of porridge from the Bears access, would kick him out of Goldy's bed, throw him outside and would bolt lock the door. Shareholders should demand that management take action to remove this speculative short interest Bear from the float now. A Company with CYMI's float should have a maximum of a couple hundred thousand shares of short interest not 2 or 3 millions. The price is just right!
Good Luck To Each And All
Curly
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