SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Avtel Communication (AVCO)
AVCO 2.020-2.9%Nov 6 9:30 AM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Kevin McKenzie who wrote (17)11/12/1998 10:39:00 PM
From: Don Edgerton  Read Replies (1) of 461
 
Not a short squeeze as who would be short this stock at 2 and I believe that stocks under $5.00 are not marginable which is a requirement for shorting.

I suspect the following scenario. Most owners own it at a loss. They had just about given up. Volume down to nothing. Somebody sees the news releases and starts the buying. A lot of buyers with no supply. The MM has to keep increasing the bid to gain supply. Soes traders get in out and back in. Meantime the long term holders were at work not even dreaming their stock would recover. Tonight they will see that they can get out and a lot will sell. Big supply tomorrow.

One news release misinterpreted the AVCO news release. It said nothing of an "avtel modem" or nationwide rollout as one report implied. GTE is marketing SDL as can others as the modems become available. Barriers to entry for the consumer - high cost of sdl modem and high cost of service "starts at $30/month. Only useful withing 3 miles of telephone exchange. How many potential customers within 3 miles of the exchanges in Santa Barbara abd the other two cities. Not a lot I expect.

If a nationwide roll out were contemplated where would they get the capital.

This is a case or trading on no information other than the stock is going up and I had better get on.

I hope it goes to $50 so I can try to short it. What a trade 50 back to or 4 so.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News