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Technology Stocks : 3Com Corporation (COMS) -- Ignore unavailable to you. Want to Upgrade?

To: David Lawrence who wrote (14657)	3/23/1998 7:11:00 PM
From: joe	Respond to of 45548

<You may be right about shorts covering, but there is way, way too much liquidity in COMS to create a short squeeze. A good deal of the increased volume is arbitrage related, with a large number of calls being written and shares being purchased by the writers.> You're probably right also. I think what your saying is that some of the rise is after effects of expiration friday. I was surprised that last week, COMS hadn't pinned up to a higher number the entire week I think. Mainly, though I could sense shorts covering for one reason or another, but definitely, it was not a panic covering, (short squeeze) otherwise COMS would have gotten to the high 36's. Some of them are just being naturally conservative. Some of them are convinced the stock will go down to 20's and are taking their bets off the table now with the idea of buying at a higher price. In my opinion, the only thing that will maintain a higher price level, is if Eric B. convinces some MMs to start pumping money into this stock. Joe