<<What's REALLY been going on with IOM:
Without gloating, I will try to tell you all what has been happening to your dearly departed stock. About a week ago, your friend with the big bids decided he no longer wished to play. I would have expected that to cause the stock to tank right away, but it did not. Why? Because there was a huge amount of short covering around the low 15 area. It appears now that those who wanted to cover at 15+ have done so. The only thing that is supporting this stock is short covering. A squeeze? Hardly. As I mentioned before, when the stock is trending down, covering is easy. Next stop? Whenever shorts want to cover some more. Be forewarned. Do not take any minor bounce as a bottom. Shorts will be shorting more if the stock price gets back into the mid to high 15 range and given their recent covering, they will do so with a vengeance. Are we having fun yet? I know I am.>>
Joel,
There is very strong resistance at $15.00. We all know that your firm began shorting IOM at around $25.00. The only "squeeze" I see is your firm trying to greedily "squeeze" just one more nickel out of this one. I think your firm's greed on this one is unjustified especially with solid resistance at $15.00 staring you directly in the face and knowing that more than 10 major OEMs are packing their machines with IOM products, increased Malaysian productivity, Malaysian tax incentives and so on. I honestly think your short dollars would be better parked in a company with a hundred plus P/E at this point. Regardless of your description of major short selling occurring now and on any rise in price, it certainly is not reflected in the daily volume numbers I look at. The IOM volume is very very low, which is what happens when a stock forms a base. The $15 base could last 1 day or last 3 or 4 weeks, but that is what is happening. IOM may spike down significantly intraday, but it will always close closer to $15.
Best Regards,
Wayne |
