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Technology Stocks : IFMX - Investment Discussion -- Ignore unavailable to you. Want to Upgrade?

To: Gregg who wrote (9781)	3/4/1998
From: Robert Graham	Read Replies (1) \| Respond to of 14631

This looks good. I see this stock was recommended when it was below 5. This supports my suspicions that many entered at that price. I am very surprised to find such an outstanding short interest at this low price. The short interest much of been accumulating since its rise from 5. All one has to do is compare the upside risk to the downside profit potential to see how absurd this is. There are definitely better shorting candidates out there. I wonder...I think part of this short interest may be the result of a hedge. Given that there were many more writers that purchase interest in the option, the MM would end up taking the other side of this transaction. There just is not many 5.0 CALL options that are in demand and being traded on this stock. Anyone here have been watching the volume activity on this option? In order for the MM to protect himself in this relatively illiquid situation as far as the lack of demand, the MM would short stock. So perhaps a fair amount of the 1.3M shares the 13,000 CALL options relate to is an ongoing short position by the MM. Doesn't this number represent a significant amount of the total short position in this stock? Particularly when the stock was at 5? Or am I way off base here? This does not explain why the MM would not of turned those options by now to cover his short. Bob Graham