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Technology Stocks : Lucent Technologies (LU) -- Ignore unavailable to you. Want to Upgrade?

To: hitesh puri who wrote (10532)	10/22/1999 12:49:00 PM
From: GVTucker	Read Replies (2) \| Respond to of 21876

hitesh, RE: Goes to show that on Wall Street if you give a reason for the shorts to get attracted to you your stock gets killed. To extend on that point, the line of demarcation for to tell is a stock is sold short to a level of significance is 10% of the shares outstanding. Below this level, and short interest and stock price performance are not correlated at all. When short interest gets above 10% of the outstanding shares, future stock price performance (looking one year forward) is negative on average. In other words, if the short sellers really start going after a stock, the odds are that they are right. Not always right, mind you, but more often than not. LU shares outstanding are 3,064mm, short interset of 49mm, way under the 10% threshold. So you can basically discard the short sellers and short interest as a significant influence on the stock. The shares outstanding is just too big.