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To: energyplay who wrote (5473)	6/26/2001 1:51:39 PM
From: energyplay	Respond to of 23153

Why your shorts will take time to work form Jim Cramer - The Warped Price Action in Applied Micro Circuits By James J. Cramer 6/26/01 12:34 PM ET URL: thestreet.com When something is too heavily shorted, it won't go down as it should, no matter what. That's the lesson of Applied Micro Circuits(AMCC:Nasdaq). We have seen this pattern happen every single time with this stock. It blows up, and the shorts cover and then it starts rallying as the other shorts then take the stock in because they feel like the worst must be over. When there are as many short-sellers as we have in this market, we are not going to get truly accurate pricing of stocks on bad news. I recall when AMCC said on television that it could not make the estimates and it started down and then rallied just like this -- and it was in the 20s then! That action led many people -- many analysts and portfolio managers -- to believe the worst was over. It wasn't. The stock kept coming down. I suspect this will happen again, as AMCC works its way back to being a small capitalization company