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Technology Stocks : Rambus (RMBS) - Eagle or Penguin -- Ignore unavailable to you. Want to Upgrade?

To: Matrix_Man who wrote (23672)	6/25/1999 2:03:00 PM
From: GVTucker	Read Replies (1) \| Respond to of 93625

Matrix, RE: Do you know how closely the axes on any particular issue, in this case RMBS, know the short interest on a day to day basis? They have less of a handle than you think. For example, Morgan Stanley, who is as much of an axe on RMBS as anybody, obviously knows their own (long) position well, and keeps close tabs on their own market makers intraday position. Additionally, their stock loan department keeps close tabs on other stock loan departments at other firms. But you've got to remember that a firm that may have loaned a large amount of stock out to a hedge fund would really piss that fund off if they disclosed their short position to Morgan Stanley. (And if they piss off the hedge fund, the handsome commission $ that fund pays could easily go to someone else.) And there are a lot of firms in that boat. Thus, there is still a rather large information vacuum that Morgan Stanley must encounter; they can only guess as to the short interest form that side.