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.

Non-Tech : Knight/Trimark Group, Inc. -- Ignore unavailable to you. Want to Upgrade?

To: mnreddy who wrote (2328)	7/14/1999 10:54:00 AM
From: Sir Francis Drake	Respond to of 10027

<<why are they shorting/selling NITE with vengeance>> As far as selling - they may simply have a bunch of shares to unload. Why short? Obviously, if that is what is going on, they simply believe the price is going down. You mention how shorts got hurt on net stocks like AMZN. Yes, shorts got burned. However, ever since the big correction this year, a lot of trading houses, and traders have grown bold about shorting nets (I know I have - I never dared short in 98, and up to April 99, but now...). Plus, the problem with shorting a net stock used to be the small float (hard to cover). What if they know a lot of shares are coming on market (lockup ended 07/13)? NITE cannot always "support" their price. They do have a buyback program in place, but with as large a share overhang, it would be counter-productive to buy now, when a whole bunch might be coming on the market. Besides, I'm sure they want to keep their powder dry, for the fall, when the market might tank, and NITE could become extremely undervalued. Buying shares is the last resort - there are better ways to spend cash - they are expanding their business. Morgan