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To: SJS who wrote (26393)7/24/1998 11:10:00 AM
From: Intel Trader  Read Replies (1) | Respond to of 95453
 
Steve, you've also go to consider the float of the stocks. Small float = greater volatility.

it



To: SJS who wrote (26393)7/24/1998 11:24:00 AM
From: marc chatman  Respond to of 95453
 
Steve, you are basically correct. But keep in mind special situations such as acquisitions, where a large short interest position is deceptive. Arbs will short the acquirer and long the target, and at the time of the merger, when shares of the acquirer are exchanged for shares of the target, the arb uses the shares received to cover the short position. Obviously, there are several mergers-in-progress in the sector.