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Strategies & Market Trends : Cents and Sensibility - Kimberly and Friends' Consortium -- Ignore unavailable to you. Want to Upgrade?

To: Craig K who wrote (22349)	11/2/1999 4:19:00 PM
From: bigbuk	Respond to of 108040

DSLN - :-) BB

To: Craig K who wrote (22349)	11/2/1999 4:20:00 PM
From: swisstrader	Respond to of 108040

This would have been a nice ride...terrific short candidate for manana: Daytrader : Price action today in Chaparral Resources (CHAR 26 7/16 +19 1/2, +291%) resources is a perfect of example of when getting short means getting shot... Shares of the previously distressed oil/gas developer have rallied as many as 28 points or 400% on news that and Shell Capital Services Limited has loaned the company $24 million, providing CHAR with the financial wherewithal to develop an oil field located in the Republic of Kazakhstan. In addition, KKM entered into a Crude Oil Sale and Purchase Agreement with Shell Trading International Limited for the purchase of oil production from the field. News comes just two months after the Houston, TX-based company warned investors that it didn't have sufficient cash reserves to meet $5 million in short-term debt obligations coming due in August and September... The run-up in CHAR shares today is the type of move that both longs and shorts dream about. Momentum players are being drawn to stock by its extremely small float of just 600,000 shares and reports that Bill Gates holds a stake in the company. From the flipside, experienced short-sellers have seen this type of move before, and have learned that these stocks come down almost as quickly as they run up. The problem, of course, is timing the trade. Undoubtedly, some shorts saw plus 100% or so (approx. $14 per share) as a good time to take a swing at the stock, looking for a pullback of 25%-30% by the end of the day. In fact, it's very likely that those short sellers who entered the stock early are responsible for a good bit of the CHAR's gains, as they rushed to cover their positions... In the end, the shorts will have been right. CHAR shares are likely to shed the majority of today's gains. But being right and making money are two very different things. And now that the stock appears to have peaked, will be difficult for short-sellers to re-enter the stock and ride it down, as there will be few shares available to be borrowed.