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Strategies & Market Trends : Roger's 1998 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: Roger A. Babb who wrote (14361)	10/4/1998 5:40:00 PM
From: upanddown	Read Replies (1) \| Respond to of 18691

Roger, thanks for your $5 limit response. The question was prompted by a stock I'am looking at for a long, CFN. I know the sub-prime lenders are roadkill these days. CFN is 5 3/4 currently, down 85% since May and has a huge short position (35-40% of the float). 77% is owned by Continental Grain (a very large private co with deep pockets, bigger than Goldman Sachs) so the float is small. It seems amazingly cheap at 2.6 PE TTM and less than 2 next year. Estimates have come down (20-25%) and some debt has been downgraded. In comparison to ACF, less than 50% of ACF market cap but 4X its revenue and 3X its net. I'am currently short ACF but it seems like CFN might be in a "baby with the bathwater" situation. My question is could approaching $5 with its limits on new short positions start a short squeeze ? Probably the wrong thread to ask this question but would appreciate your insights. Thanks, John