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Technology Stocks : Kulicke and Soffa -- Ignore unavailable to you. Want to Upgrade?

To: scott_jiminez who wrote (4707)	1/31/2001 8:19:09 AM
From: Jerome	Respond to of 5482

The short sale thing.....Scott, whereas at one time short sales were considered a good indicator by some, I do not believe that it is as useful as in prior times. I believe that short selling works best a high volatility stock. This would explain the decrease in short selling on KLIC. When KLIC tanked and stayed at the 10 to 12 range there was no volatility to work with.The result being a decrease in short selling. I have stated numerous times on these posts that NVLS is the best covered call write of the four heavily traded stocks (AMAT,NVLS, KLAC, & LRCX). Because it has such nice volatility its an ideal short. Just wait until it moves up 6 or 7 points in two days and then short it. As online trading continues to increase, the ability to take temp short positions becomes very easy. This was not true 10 years ago. And lastly I think we should distinguish between shorting very over valued stocks, with very high PE's and no earnings (long term shorts), vs those stocks that have solid earnings and a great deal of volatility (short term shorts). FWIW... Jerome .