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.

Technology Stocks : Westell WSTL -- Ignore unavailable to you. Want to Upgrade?

To: Lucky888 who wrote (18044)	2/18/2000 5:54:00 PM
From: Rich Wolf	Respond to of 21342

I'm inclined to agree, the stock is basing nicely here in mid-20s, for the next move up. I've been a buyer of TLTN stock and WSTL options lately. With the volume we're seeing, the poster who was concerned about 'the shorts' can put those worries aside. Those days are done. As Lipolymer noted, by our count Castle Creek has entirely hedged their convertible bonds and many of their warrants. Since they can collect interest on the money received from the short position, CC has little incentive to close out the position right away; hence you'll continue to see a large, but meaningless, short interest that is entirely due to their hedged short position, and this will hang out there for a long time. Keep in mind that there would be no 'squeeze' due to this, since the position CC holds is hedged (by our assessment). The 50% retracement to 25ish from the move from low 20s to over 30 has been completed, with some backing and filling; the upgrades will help instill more buying interest. Long-term I'm quite bullish about WSTL's growth prospects, and this supports a higher shareprice by next earnings report, I think. Regards, Rich