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Strategies & Market Trends : Dave Gore's Trades That Make Sense -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (13098)	9/27/2002 8:22:39 PM
From: Dave Gore	Read Replies (1) \| Respond to of 16631

Mish, you aren't REALLY thinking again. <Dave this is TOTAL nonsense. "beating numbers" shorts probably figured out ESST was channel stuffing. Just like CSCO and INTC did. Eventually if PCs do not sell, DVDs, VCRs, whatever (you name the product) flash memory is another, and products that use that technology are not selling then there is going to be a big problem.> First, the short increase was sudden. It increased nearly 200% in one month (from 4-12M) and of course, since we small guys don't have access to daily short interest, we didn't know until it was too late. Second, major shorting groups do not "probably figure" (as you said) anything. They don't short in a major way unless they KNOW. They are risking big money. Third, the company SOUNDLY beat earnings not once but twice and the stock went down anyway. When have you seen a stock tank 25-35% when they beat earnings by 10 cents and offered excellent guidance? Then again beat earnings 3 months later. Translation - never! Fourth, (and again this is the main point). Shorts were able to tank the stock anyway. It appears they got info that was INSIDER INFO that was partly bad and shorted early. Still they never lost control. That's shows how much control they have. There's even more evidence to this dubious case, like the rogue reporter and a couple additional rumors that the company had to respond to. FINALLY ---- Mish, you just don't get it, still. I am NOT siding with management. I am using elementary logic to tell you that there is NO way a major shorting group would target this stock so suddenly unless they had insider info that something was wrong, something that the rest of us didn't find out about publicly for almost 6 months. That's illegal. It was planned and they really showed me how powerful they are. People SHOULD be outraged, many are, maybe we'll find out more someday.