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Technology Stocks : Rambus (RMBS) - Eagle or Penguin -- Ignore unavailable to you. Want to Upgrade?

To: jim kelley who wrote (46403)	6/30/2000 2:51:36 PM
From: blake_paterson	Respond to of 93625

2:21 PM per SI RMBS Price Chart: RMBS now trading at 10,489, w/ intraday gain of 10,388 1/16. That must be one MUTHA of a short squeeze. <g> BP

To: jim kelley who wrote (46403)	6/30/2000 3:16:07 PM
From: GVTucker	Read Replies (1) \| Respond to of 93625

One last thought on the short sale/RMBS thing. One key contributor to a short squeeze is how much naked shorting is being done out there. Naked shorting is basically short selling a stock without declaring a short sale. Some of the less than ethical buy side people out there engage in this tactic because you don't need an uptick to sell short the stock and you don't need to go through the effort to borrow the stock, helpful for a hard-to-borrow situation like RMBS. The downside, though, is pretty extreme. First of all, the brokerage firm can pretty much buy you in at will and without notice. This is what happened in February. A few brokerage firms let their clients naked short RMBS, and these firms fueled the rise. The other rather exreme part of the downside is that this practice is kind of illegal. Also, regualtors don't need to sniff too hard to find you, so it is also easy to get caught.