WDC/Sandisk Corporation Message Board

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Technology Stocks : WDC/Sandisk Corporation

WDC 140.23

-8.9%

3:59 PM EST

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To: Artslaw who wrote (5287)	4/8/1999 2:40:00 PM
From: Art Bechhoefer	Read Replies (2) of 60323

To All: When a stock drops precipitously with no news to trigger such a reaction, it is an indication of short selling. The problem for short sellers who engage in this behavior with smaller cap stocks is that they can get squeezed easily if the owners of the borrowed stock decide they want their shares back or want to accumulate more. Even if earnings do not show much growth, a statistic like huge growth in unit sales or in overall sales revenue could lead to a short squeeze, forcing those with a short position to cover, whether they like it or not. Notwithstanding the uncertain earnings, we're looking at a company with a better cash position than most small, growth oriented firms. And while, this is not a very large company, the shares may also be attractive to certain institutional investors.

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