Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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.

Strategies & Market Trends : TATRADER GIZZARD STUDY--Stocks 12.00 or Less..... -- Ignore unavailable to you. Want to Upgrade?

To: Rashid Garuba who wrote (9701)	6/21/1999 4:53:00 PM
From: Dale Baker	Read Replies (2) \| Respond to of 59879

Briefing chimes in: (Daytrader) : A message to those individuals currently short Internet stocks: You're marked men. Price action in Internet group today suggests that momentum players have the shorts on the run. Most conspicuous example is rally in online brokers. Group being paced by Ameritrade (AMTD +12 5/8), E*TRADE Group (EGRP +4 3/4) and Charles Schwab (SCH +8)... When shorting volatile, tech stocks, it simply doesn't pay to put your business out into the streets. Over the past week or so, this analyst has read three major business publications that have written unfavorable words on valuations of e-brokers. Each of the articles quoted fund managers who were short the group. In addition, at least one money manager has appeared on CNBC touting the downside in the online brokers... So much negativity in one place almost always signals a near-term short squeeze. Even stocks with the most broken of fundamentals benefit from this phenomenon. Take recent rally in Iridium World Communications (IRID 9 1/8 +1 3/8) as an example. Although probably a safe bet to assume this stock will be trading in the low single-digits within the next year or so, there were simply too many investors making it known they were short the stock. As a result, once it appeared IRID had bottomed, momentum players began to pile into the issue, sending the stock more than 85% higher over the past two weeks... The next group of shorts to suffer will probably be those who have shorted recent IPOs. While valuations on many of these stocks still absurd, only takes a little news or momentum to attract the "short-squeezers." -DS