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

To: Al Serrao who wrote (23723)	6/28/1999 8:39:00 AM
From: GVTucker	Respond to of 93625

Al, RE: GVTucker, why is a short squeeze a major event? Don't the SOES bandits do this on occasion? At least they reportedly did. And why would anyone want to actually go short a stock this thin? Seems like you're inviting trouble if you do no matter how bad a company is. As I have said before, short squeezes are much more rare than most people think. The SOES bandits are such small players that I have never seen them either individually or as a group, cause a short squeeze. The only people that SOES bandits cause problems for are the Nasdaq market makers. Why do people go short thin shares? Most often this is the very area where the greatest reward is. A stock like Solv-Ex comes to mind. The reason a lot of stocks sometimes get to really absurd values is that same thin float. The key is to borrow shares from as solid a source as possible. If the source isn't solid, that really increases the risk. (Duh!) And before anybody leaps to an inaccurate conclusion, I don't think RMBS is another Solv-Ex, not even close. Different universe. Just wanted to clarify.