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Microcap & Penny Stocks : Ames Department Stores (AMES) -- Ignore unavailable to you. Want to Upgrade?

To: Arthur Tang who wrote (1768)	10/29/2000 1:58:48 PM
From: Dan Duchardt	Respond to of 1911

Arthur, et al. On the technical side, AMES has held above the 10 day moving average the last couple days and has clearly broken above the downtrend line originating in early September. Stochastics and MACD indicators I follow look favorable for a near term rise at least into the $5+ range. A solid move in that direction could certainly trigger the short squeeze you mention Arthur. With an average daily volume of around 500,000 shares, it would take 6 to 10 days of "average" trading just to cover those shorts, and that could certainly induce a flurry of buying. I would not be surprised to see a repeat of the early September run for a few points, but of course nothing is certain. Friday's volume was up, but unfortunately nearly half of it was a single transaction for 220,000 shares, priced below market at the low of the day. That is not particularly encouraging since it suggests an institutional holder dumping a large block to a short MM happy to take a tidy profit. If that is the case, that's 5% of the short interest covered at a very favorable price to the MM. Would far rather see a run on the stock that would force the MMs into covering at higher prices. Earnings due November 9. Will be interesting to see how things go as it approaches. Dan