To: Clayleas who wrote (1826 ) 4/25/1998 12:05:00 AM From: blake1 Respond to
Only twice before have I ever seen such a setup for a short squeeze: Presstek and this week K-Tel. Presstek quintupled in value as the clueless declared bankruptcy, and K-Tel went from 6+ to 49 in days. As with any short squeeze of that magnitude, the prices come back down to a middle of the squeeze reasonable price. What I am seeing with CCSI is the teeing up of the shorts for a ridiculously easy at bat by the hedge funds, money managers, and some of the current longs who have been saving up for this. With the huge short position, CCSI could EASILY run up into the 30's+ once the economics of the deal are announced. If you don't believe Lehman will be buying HEAVILY upon the announcement, once the restriction on them buying is lifted, along with others alerted by Lehman and Hill and Knowlton, then you don't have a clue about big time stock investing. If you're an amateur short, you won't be able to get out the exit until the elephant shorts have stampeded in a panic. I believe that after the huge inevitable runup has occurred, the stock will settle in the low 30's. To give you a clue, for those shorts that haven't bothered to conduct any DD, the CEO will only be able to convert her preferred into common if the stock averages $31.11 or higher. Think she has some motivation to take her time, as she has done, and maximize this 1st deal's revenues? REMEMBER, we voted 2 months ago to also allow her to convert if the co enjoyed $20+ million in earnings OR extraordinary payments by distributors. Do you think that change was dreamed up to fit the coming deal payments? Now you're catching on.
