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Strategies & Market Trends : Market Gems-Trading Strong Earnings Growth and Momentum -- Ignore unavailable to you. Want to Upgrade?

To: John Liu who wrote (1729)	1/15/2001 3:27:05 PM
From: JustInTime	Respond to of 6445

>>Anyone have any thoughts on what happens immediately the next trading day when a stock(XIRC) that is heavily shorted(2.6M Shares) gets a buyout offer from a reliable buyer(Intel). Does the price jump over the listed purchase price($25) because of shorts having to cover? Any thoughts? I wouldn't think the price would jump above the asking price...why would it?...plenty of people will be cashing out at $25 (probably $24 3/4 or so, assuming it was a cash offer), so anyone that is short will need to and be able to cover at that price. ...wish I was long XIRC!

To: John Liu who wrote (1729)	1/15/2001 4:21:52 PM
From: Jenna	Read Replies (2) \| Respond to of 6445

XIRC should open around 24 to 25 in the morning. The fact that it was heavily shorted over a weekend makes for unwise strategy. There would have been plenty of time to short LLTC, TER, JNPR, or XIRC on Tuesday before earnings. Other semiconductor stocks might show some anticipation before earnings and shorts should understand that a likely candidate for buyout like XIRC is not a good and dependable short. There is no way I can regret not being long XIRC, I never would have done that either. The volatility in the semiconductor sector will be huge this week and we should see others bite the dust, however, I would have thought XIRC with a comfortable P/E ratio to continue up.

To: John Liu who wrote (1729)	1/15/2001 5:40:28 PM
From: Jenna	Read Replies (1) \| Respond to of 6445

e-mail: VTSS marketgems.com VTSS did very nicely for a few days and looks fully valued here. Looking for possible the 55 puts for February or January depending on what the market internals are like by 10:00. Options expiration is on the 19th but earnings for VTSS is on 22nd. The next few weeks will have 'external' stimuli effecting the market. First the earnings reports from these and other companies, following up with a fed meeting just when the prices have probably moved down before and after the earnings reports. Probably a good few weeks for short preceding the final entry to stage 1 when many of the sellers are finally shaken out. Keep your watch lists for the next few days as they will include technical and fundamental analysis and by the end of the month we should have a new crop of longs/shorts for both short term and maybe intermediate term holds. At this point we might be finally getting the last or nearly the last shake out as overpriced blimps get punctured and oversold stocks that have come down to 1/3 of their prices in early October might be attractive once again.