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

To: upanddown who wrote (14362)	10/4/1998 6:37:00 PM
From: Roger A. Babb	Read Replies (1) \| Respond to of 18691

John, I am not familier with CFN, so take my comments as a general response to your question. Crossing $5 to the downside will eliminate most selling pressure from new shorts, but does not cause existing shorts to cover, thus no short squeeze. In fact the opposite usually happens, crossing $5 to the downside makes the stock unmarginable at most brokerages and squeezes longs who are on margin thus creating selling pressure. Many stocks that cross $5 to the downside drop quickly in the $3 to $4 range, then get support as shorts cover to take profits. This is no prediction for CFN, just a general observation.