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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: patron_anejo_por_favor who wrote (47961)	12/22/2005 12:33:27 PM
From: orkrious	Read Replies (2) \| Respond to of 110194

From Succo at Minyanville For those of you who want to explore the machinations of Wall Street, check out LEND today. You are witnessing what they call a "short squeez" play. The largest shareholder is a black-box quantitative fund. They buy stocks based on cash flow only, not looking at fundamentals or risk. In other words, they make no judgement on the environment under which the company operates. This fund has $18 billion in assets and is long only. They own by far the largest percentage in this company, around 20%. This fund has been adding to shares. The third largest is a hedge-fund, a smart one. They know the first is a net buyer. The next ingredient is short interest. The short interest is over half the float of the stock. Alot of people think this is a crap company in a deteriorating environment. It is close to year end. What better time to push out the shorts, when everyone is worried about performance All the ingredients are there, including the action in the stock. The buyers came out this morning taking offers and bidding through them. This got the stock going and the shorts nervous. I imagine the shorts are covering just when they shouldn't.