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.

Biotech / Medical : Chromatics Color Sciences International. Inc; CCSI -- Ignore unavailable to you. Want to Upgrade?

To: In Limbo who wrote (1083)	2/19/1998 7:32:00 AM
From: blake1	Read Replies (1) \| Respond to of 5736

Lack of individuals desiring to sell + short individuals having to buy = classic short squeeze . Upward pressure may continue over next day or 2 due to margin calls on shorts. This has been an excellent example of a short squeeze: lots of new buyers coming out in force due to news of initial deal coming very soon and due to increased liquidity from split. Mgmt has done everything right IMO to help increase s/h value as they should. It was brilliant to declare last Fri, the day of the s/h vote, also as the record date AND the effective date for the previously much maligned sock split. There was no warning and several brokers are having problems straightening out split and getting shares due to requirement in this case of physical delivery of old shares to get new shares. This creates a short-term liquidity problem I believe for those having to deliver shares that are now being bought since last Fri. Skip may know more and agree or disagree about this physical delivery issue. In any event, the beginning of the long-term story is just around the corner, so we should soon have info available for analytical bus models to be built and house coverage of CCSI to begin. The stock may be overbought in the very near term possibly, but why would anyone short for a point or 2 with this large news and the beginning of the true story just around the corner? The risk is still seriously high to anyone short. We must remember that the stock will fluctuate both up and down, but that the important thing for INVESTORS is that the incentives are squarely in place for mgmt to greatly enhance s/h value over the long term. In the mean time, the short squeeze I talked about last Thu may well continue for a while.