To All...
One quick clarification. I'd like to believe that Vinik, et.al would find a point to lighten up their holdings and take some profits, but knowing his (and his pals) styles they will remain as greedy as possible and try to keep his game going. I also believe that the recent Bear Stearns analyst coverage reflects a "consideration" for their ongoing positions...as he, and most of his bud's clear their funds thru Bear. Bear's research is mostly pathetic, in all areas except risk arbitrage, and has been, in the past, known to be somewhat suspect around the street for its timing and relevance.
These guys are the most greedy and non-ethical hedge funds on the street and are unlikely to cease what has been, to date, a very profitable strategy. One day, IMO they will get caught, spanked, or punished for this blatantly manipulative tactic....but not until the SEC and NYSE and NASD get the spine and resolve to clean up the markets on both sides. Until then...be careful and watch out for these
sleazy tactics. The only things that throw serious monkey wrenches in this strategy are increases in the stock floats, corporate earnings warnings (serious ones only) and restrictions on their operations (i.e. considerable $$ redemptions......highly unlikely for now).
One other point worth noting is the high probabability that several troubled hedge-funds have indeed been short the "Net" stocks of late and have been forced to cover of late and may continue to do so. I do believe that most of that has been done....but one never knows and the Bear move makes me suspect that this may continue for some.
Good Luck to all but the Swine |
