Didax, Inc. was featured in a Business Week article this week-end, which projected it could be trading in the mid-20's in the near future. The article mentioned that company executives are in the process of arranging "strategic partnerships" with AOL and AMZN. I do not need to emphasize what news of those partnerships will do to the stock price, in light of activity in the Internet sector recently.
AMEN has gotten wide exposure this week-end, with mentions in The Wall Street Journal, AP, Reuters, MarketWatch, Yahoo and Briefing, to name a few. The float is a mere 2.6 million shares and there are 870,000 shares sold short. That represents 1 in 3 shares sold short. Yes: ONE IN THREE SHARES SOLD SHORT.
On Level II Friday it became quite clear to me that NITE, HRZG and TSCO were accumulating AMEN. We would have seen a great drop in price Friday at some point if market makers were not accumulating. It was likewise clear that many traders had the insane strategy to short AMEN into the week-end. That was very foolish, as anyone who is familiar with the trading patterns of a stock such as AMEN will attest. If one refers to the historical chart of AMEN, on November 27, the day after Thanksgiving, it traded in a very tight range all day long, around 6, and then exploded to 21 during the final 30 minutes of trading. Many shorts took their chances then, and paid the price. It ran to 40 the following Monday. I believe it likely that AMEN makes another run this coming Monday, as the same inexperienced players who thought AMEN an easy short then have entered again now, and will once more find it very rough going at the open. MMs know only too well how many shorts are in AMEN and set them up yesterday. We will see a huge short squeeze on Monday. AMEN could run on and on. There are simply not enough shares to go around and too many shorts. My target is 25-30, though it could go much higher on a short-covering panic.
Christmas is not over yet. Congratulations to all who held long into the week-end. Monday will be a very pleasant experience for you. |
