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

To: Charles Hughes who wrote (11925)	9/19/1998 2:29:00 AM
From: Robert Graham	Read Replies (1) \| Respond to of 14631

Well, I think they would of wanted to cover below 5. The stock did make it to 3.5. The smart ones covered already. But I rarely have met a smart shorter. Their contraposition in the stock leads to them becoming attached to their position. Also there were allot of shares shorted before the drop below 5. I do not think we have seen that many bought back in a massive short covering. I do agree many have shorted above 5. So some will likely start to cover when the stock reaches above a significant value like 5. But many will still hold on expecting the stock to go back down. I can see where shorters will still hold their position even though the stock moves above where they shorted. I think many took their position as the stock was moving back down toward 5, lets say near 6. So I think the stock would need to move above 6 in order for the short positions to start going away in any large scale. This is just a guess on my part making use of the available information. I think your short term range for the stock is applicable. I do not think the stock will make it to 6. We may see moves to 6 right before the earnings release if the company releases good news to prep for the earnings report. This may induce some of that short covering. But I am not counting on this. Until the situation changes with this stock and company, moves to 6 IMO are to be faded. I will sell more stock as soon as 5 1/2 is reached depending on how much selling we will encounter at the current price level. 50 day EMA according to the net charts appears to be below 5 1/2. Stochs shows the stock is ready for a pullback with support at about 4 1/2 (20 day EMA) and 4 and a minor support inbetween. Bob Graham