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

To: Gary who wrote (2159)	11/27/1998 5:17:00 PM
From: vincenzo	Respond to of 3645

Gary - I don't really get to brag until the Neo shorts start capitulating en masse at $23+. That is when I will start feeling vindicated for all my ranting about short squeezin'. To view a graph on short interest go to this link: dnai.com I'm counting on two factors to play heavily into my el squeezo scenario: First, the cooperation of the institutions, who not so subtly bought into Neo in a big way around earnings time. I expect them to become bigger and bigger buyers as the price approaches $18. Second, the catalyst will be the market. I believe it is set up for a run at Dow 10,000. The shorts will be able to hold it back only so long if the market continues its run. The trend is your friend and the trend is decidedly bullish right now. Even if the market is largely neutral over the next week or so, I believe a Christmas rally will develop before the recent market surge back fills and retests significantly. Then we have the January effect which is most pronounced on undervalued small stocks leading into the required run-up prior to the next killer earnings release. As we get within about six weeks of the next earnings release, history turns its baleful eye against the shorts as run-ups prior to earnings for this stock are more predictable than sell-offs after. Particularly this quarter where visibility of earnings is very good. For some strange reason, knowing that there are guaranteed buyers for 3+ million shares waiting in the wings makes me feel like I should hold and add to my Neo stake. A year ago that was almost as much as the entire float of Neo stock. I was hoping to add to my stake in the 18's today. I settled for 19 even. All the larger trades where on the buy side today. So was mine. vincenzo