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Technology Stocks : Neomagic Corp. (NMGC) -- Ignore unavailable to you. Want to Upgrade?

To: James Wright who wrote (2147)	11/25/1998 12:38:00 PM
From: vincenzo	Read Replies (2) \| Respond to of 3645

Jim - I also have seen a number of small cap high tech stocks run up rapidly over the last month and pause somewhat the last few days. However, some graphic chip stocks are starting to break out: take a look at SIII, up over 20% today on high volume. I think that this is the pause that refreshes and that Neo has not yet seen it's high for the year. As I suspected, short interest has risen to 3.18 million shares as of November 8. Keep in mind that Neo had just touched $18 at that time and two weeks of million plus volume days have occurred since then. Consistant with my theory that Neo is being shorted heavily at this level, I believe that the short interest is probably much higher right now. Unfortunately, we will not have confirmation of this until after Christmas. All the elements for a eye-popping short squeeze are in place as Neo heads into a record quarter earnings release and smashing new product announcement, right after the January effect, right after the Christmas rally as the market continues its mad headlong dash into record territory. Over the last few days the price has dropped modestly on low volume. I don't expect our institutional friends to get back heavily into the buy side until after the Thanksgiving holiday weekend. I will be adding significantly to my position either today or Friday. In other words, Jim, I agree with you. Good luck. vincenzo