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Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?

To: Jane4IceCream who wrote (33206)	8/29/2000 2:21:33 PM
From: Rande Is	Read Replies (4) \| Respond to of 57584

Jane, Regarding CRDS. . . As a "company", they are in a good place for getting taken out by an aggressive company like CSCO. CRDS makes Fibre Channel Storage Routers. . . .a compatible product to CSCO. However, the Fibre Channel sector has gotten extremely crowded and competitive. . .making it more difficult to make money. . . and just a few take in the lions share of revenues. Now, due to the company lowering earning estimates so sharply, they have taken a bath. The bad news is that since last week, several more lawfirms have piled on . . .filing class-action suits against CRDS. As a trade. . . We saw some great turn and buy opportunities around 8 last week. From last Thursday: "there is no doubt that CRDS is OVERSHORTED like a spring. . . just a matter of time now. . ." Message 14270500 Today we have CRDS at $12. [Up 50% from $8.] The stock rose to $14 last week. Short-sellers were sure to knock it back to $11. . .but in their greed, they OVERSHORTED it to $8. Jumping on between $8 and $9 was a no-brainer as the stock eventually "corrected" back to $11. . .picking up a few momo players along the way has pushed it back near $12. Not sure why some local short-sellers have difficulty understanding our strategies of pouncing on obvious overshorted stocks. This has been a successful strategy here for a long time. And while I wish more of the stocks we watch would get overshorted [we are traders, are we not?] . . . bringing us such obvious plays. . . . . I will not prompt, tease, bait or nudge short-sellers. . .regarding momentum plays or otherwise. So I will break tradition and say precisely what I mean regarding all further momentum trades. . . . I know that selling-short is a risky enough biz. . . having heard the horror stories of last spring, when so many lost their entire accounts. . . . . . which is why we generally play short as an enhancement to our long trades. Easier to sleep that way. After all. . .we are ALL Individual Investors. . . and our common opponents are the Wall Street brokerage based criminals. Hope that answers your question. . Rande Is