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Technology Stocks : Rambus (RMBS) - Eagle or Penguin
RMBS 87.20-3.3%3:59 PM EST

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To: unclewest who wrote (20879)5/26/1999 5:50:00 PM
From: TST  Read Replies (1) of 93625
 
What do you think of this. You are an institutional investor. You take a big position in Rambus. Now you wish to develop a win-win situation vis-a-via your position. So you short, you short maybe a
1\3 your long position maybe more. Others do the same. Now your in position to make money either way, but the main bet is long. If the stock falls your somewhat covered. But, if it doesn't your short position & that of others moves to cover & that in turn drives up the share price; enough even to absorb the loss on the short position you had to cover. Institutional investment has increased quite a lot & at the same time so has the short now at 6.1M, a full 1\3 of the outstanding shares. Interesting situation isn't it.
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