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To: oly who wrote (16975)11/1/1998 12:20:00 AM
From: DanZ  Read Replies (1) | Respond to of 53068
 
AFRI.

Oly,

I know absolutely nothing about this stock but there is a reason why it is trading at 25 cents per share. I'm assuming that the company has problems and I just want to offer a counter opinion to your 7 to 15 upside target based on short covering. Buying alone will not necessarily move a stock up because there might be a bunch of people looking to sell it. Have you ever seen a stock trade 10 million shares in a single day and not budge in price? The reason this can happen is because the supply and demand are in balance even though there is a lot of volume. So while I know nothing about this company, my gut feeling is that short covering alone will not necessarily move the price up and I think it is quite far fetched to expect 1 million shares of short covering to move the stock up as much as you have predicted. Best of luck with this stock if you are long but I would be careful with it. The price could go to zero.

Dan