Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Cymer (CYMI) -- Ignore unavailable to you. Want to Upgrade?

To: Cymeed who wrote (10675)	11/28/1997 1:48:00 AM
From: Candle stick	Respond to of 25960

Try this link for an interesting article on CYMI from "Information Week": techweb.com search CYMER and look at the article from Nov. 17th........... here is the direct link...http://www.techweb.com/se/directlink.cgi?IWK19971117S0111

To: Cymeed who wrote (10675)	11/28/1997 8:20:00 AM
From: Sprocket	Read Replies (2) \| Respond to of 25960

If memory serves me, I believe this is covered under rule 15c3-3, and mandates that all customer fully paid for securities (type 01) must be segregated or "locked up" by the broker. They cannot be lent (legally) by the broker. Ron

To: Cymeed who wrote (10675)	11/28/1997 1:55:00 PM
From: George Coyne	Read Replies (1) \| Respond to of 25960

Cymeed, Yes, that is true; Shares held in a cash account cannot be loaned out to shorts. That is why it was hard for me to believe that short interest was anywhere near 50 %. G. W. Coyne

To: Cymeed who wrote (10675)	11/28/1997 3:45:00 PM
From: ben luong	Read Replies (2) \| Respond to of 25960

There are incentives for brokers to find customers stocks to short: (1)The proceeds of the sale, in most brokerage firms, are locked into a short account. These proceeds generate interests for the broker. The customers only get credit to their margin account if the stock goes down. If the stock goes up, the customers are debited in their margin account for whatever the amount they need to pay to cover their short position. Very seldom are customers get paid interest on their shorted position. (2) The transactions generate commissions for the brokers. (3) For each short sale, the broker is guaranteed to get another commission in the near future when the customer bought back the stock. The brokers reserve the right to call the borrowed shares back at any time. In short, it is a win-win situation for the broker, and the customers take large risk for their shorted position. Shorting is popular, especially in a down market like this because there are opportunity to get large profit at a very short period of time. Stocks often go down much faster than they go up. It is this quick profit potential that make shorting so appealing (satisfy the gambling nature of human mind). I think if your cymi shares are hold in "street name", the broker is able to lend them to someone else to short. Do you just have a cash account or you have a cash/margin account. You can call up your broker and ask to speak to the manager (I will not talk to salary-based brokers since they often don't know much more than you about the stock market) It is also possible that fund managers are shorting CYMI because CYMI is on the Cabot Newsletter's buy list a while ago and the newsletter later announced to sell CYMI because it fell more than 20% of their purchased price. These people are shorting on the momentum.