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Technology Stocks : Williams Communications Group - WCG -- Ignore unavailable to you. Want to Upgrade?


To: H James Morris who wrote (281)12/22/1999 10:30:00 PM
From: Scott Moore  Read Replies (2) | Respond to of 609
 
So what do these portfolio managers do with their WMB when WCG goes through a short squeeze? It seems inevitable that since WCG has such a small float, that multiple squeezes should occur. It seems unlikely that WMB will respond as quickly as WCG will when this occurs. If they add to their short on a quick pop on WCG, will they recoup those losses by buying a slower responding WMB that may not reach an equivalent high?
Unfortunately, USAI has only 65% of TMCS (ticketmaster) so you really can't use that as an example. And from what I recall on those two, they seemed hardly coupled at all.
Call me pig headed, but I think it is worth averaging down just to take small profit increments on any squeeze that comes along.
Regards
Scott