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


To: Robert Graham who wrote (11920)9/18/1998 5:10:00 PM
From: RDH  Read Replies (1) | Respond to of 14631
 
Bob,

One thing about $5. At most brokerages that means that you can buy on margin. Also any shares bought previously in the $3.50 to $4.99 range will now be converted over to margin. No one will be selling to meet margin calls, and some will use margin to leverage buying.

On the flip side, expect to see some shorting. However we are getting close to earnings, and with the recent history of beating earnings estimates, there will not be many short sellers who will have the stomach to make a bet against this one, especially since it does move up before earnings.

That said, I would like to see the stock drop back down, so that I can buy some.

- RDH.
- RDH.



To: Robert Graham who wrote (11920)9/19/1998 1:51:00 AM
From: Charles Hughes  Read Replies (1) | Respond to of 14631
 
Hypothetical: A lot of people are going to have shorted above five. So you don't have a short squeeze at five, right? On the other hand, there won't be much additional shorting below five, due to rules, etc. Especially not with some good news out.

Resulting short term range: 4.25 to 5.92? Waddaya think?

I'd bet even money on the scenario, no more.

Chaz