To: Shakush who wrote (7272 ) 10/30/1997 1:36:00 AM From: Jess Beltz Respond to
Duane, I think the inquiry about Cymer's short interest is very good news. The stock was shorted heavily during the fall of the last several months, and as we all know the short interest for a company of this size is phenomenal. The stock almost has to be completely washed out. We had the rumors and now we've gone through the market crash. About the only coneivable downside left is some competitor storming through with the replacement laser that everyone wants, and we know from the technical people on this thread that that isn't going to happen. Now back to the shorts. I believe if (1) ANY other analyst upgrades the stock or (2) the company does announce a buyback, the upside potential of the stock will start to be realized and those with an open short position will have to bail. And that's the great part, because it's likely they'll just about all bail (see Curly's post of last week.) This would represent a bad Nash Equilibrium for them: if you're short, and others who are short are unwinding their positions, you better unwind yours too. You don't want to be short and at the end of the queue in closing out your position. I REALLY hope Fleckenstein put his money where his very big mouth is.
