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Technology Stocks : Ultratech Stepper -- Ignore unavailable to you. Want to Upgrade?

To: Dave Kahn who wrote (2285)	3/30/1998 4:24:00 PM
From: RobZ	Read Replies (1) \| Respond to of 3696

Looks like the shorts had a field-day today. This baby was in the 18's again, and looks like some late covering (I doubt many initial positions were established, or that much averaging down occurred) rescued it to just above 19. The trading range has been broken toward the downside. Where do we go from here? The shorts could rush to cover, increase their short position, or do nothing. Longs could bail or average down. The upside for the shorts will diminish exponentially as the stock proceeds downward. However, if volume continues above 300,000 for many more days many of the shorts will have covered and the potential for the squeeze will have diminished. Longs could then add to positions at the bottom, providing they still have a bullish case for UTEK. Their just might be a whole lot of better places one could put his money while all this plays out. The earnings on this company for the last 3 quarters and perhaps the next 3 quarters is in the tank and its no secret that stock prices (especially small cap) reflect anticipated growth in earnings perhaps more than any other factor. Showing a loss for the Q aside from cash is not much of an earnings story. I hope that not too many guys are out past 4% of net on this one. This is a 100% bet on future products. Well, that kind of risk reminds me of splitting eights against a king with "table max" on the line. Not bearish, but not as bullish anymore.