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Non-Tech : Conseco Insurance (CNO) -- Ignore unavailable to you. Want to Upgrade?

To: Kevin Podsiadlik who wrote (2471)	8/21/2000 1:12:50 PM
From: Tunica Albuginea	Read Replies (1) \| Respond to of 4155

kevin, let's you and i and donjuan savour for a moment THE GREAT StreetCom article of today: thestreet.com What Happens When Short-Selling Goes Bad (aka " What happens when a love-affair goes bad " ".......short-sellers can also cause a stock to rise if they're forced en masse to buy back the shares they sold short. " music music...music... ...Meet what's called the short squeeze.... ( ie: Meet your maker kevin...donjuan...pinky-tail..mammabear... " ...If the price of a stock that's heavily shorted starts to rise, you can see the opposite happen. Numerous short-sellers can be forced to start buying shares to cover their positions, which can drive the stock price higher and higher. A couple of events can cause this so-called short squeeze. right on brother ".....If the short is dillydallying, the broker can buy the shares directly to return to the shareholder and pass on the cost to the short-seller. More buying creates additional demand for the stock, which can cause its price to go higher. Conseco shareholder Irwin Jacobs is pushing for just this sort of squeeze. If Conseco shareholders demanded their shares back en masse, the people who are short the stock could be forced to buy it in mass quantities. That buying would probably help this stock, which has fallen 25% since the end of June. A short squeeze can also happen when a heavily shorted stock starts to rise, and short-sellers start buying to close their positions and cut their losses. The higher the price goes, the more money the short loses. At some point, the short-seller will probably give in and buy. "We get nervous when we are down 30%," says the fund manager. Buying begets buying, creating a snowball effect. Short-sellers buying shares to cover their positions push the price higher and force more shorts to do the same. The potential for a short squeeze is one reason that some investors watch rising short interest. When a stock's short interest exceeds 20% of the number of shares that trade, some people believe the stock is ripe for a short squeeze, which means a nice pop in price. LOVE IT ! ! ! ! ..Shorts buying EN- MASSE ..Price to sky-rocket ..Shorts forced to cover ..Broker buying shares in the market and passing on the costs to the short seller.... music...music...music... cheers TA