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Technology Stocks : SkyMall (SKYM) -- Ignore unavailable to you. Want to Upgrade?

To: dog76 who wrote (117)	12/25/1998 5:10:00 PM
From: CountofMoneyCristo	Read Replies (4) \| Respond to of 987

You two (dog and Fred) are obviously short SKYM. Why not give it a rest? It was a breathtakingly amateuristic play on both of your parts to hold SKYM short over the week-end, end of story, no matter what happens. The risk/reward is simply insane: your potential reward, unlikely as it is, is perhaps 2 or 3 points; your risk is anywhere from 10 to 30. You call that a well-considered position play? Consider a few factors: 1. The recent trading history of Internet stocks during the holidays. BAMM, EGGS and NAVR all had huge gaps during the Thanksgiving holiday period. 2. If you paid any attention whatsoever to Level II the last 30 minutes of trading yesterday, you might have noticed that MMs were not selling any shares under 15, and were hitting the inside bid, accumulating around 13. If they were planning a dump Monday they would have established large short positions. 3. SKYM has a float of 2 million. Consider investors in it for the long-term and daytraders establishing positions for the near-term, and the float is effectively cut in half. That means a float of 1 million shares. Any demand at all and MMs will run SKYM sky-high in an effort to prevent what happened on MZON, where they were caught without shares and were forced to short heavily, and were eventually overcome. We all know what happened after they capitulated in the mid-30's: a run to 59. Look at PCCC and DLIA yesterday. They gapped 100-200%. MMs were not prepared to repeat the mistake they made on MZON. They will do the same with SKYM if there is any demand at all. As Nasdaq's #1 Percentage Gainer and #2 Volume Leader yesterday, on a half-day of trading while many traders were on vacation, the demand is certain to be there Monday. The CNBC interview was completely unexpected and it will add to the demand exponentially. 3. Unlike most Internet companies, SKYM has no debt, millions in cash on hand, and is turning a profit. 4. SKYM's CEO stated during a conference call that the company was actively seeking relationships with major portals. 5. The Wall Street Journal, The Washington Post and CNBC, to name but a few, are reporting much higher than expected on-line sales during this year's holidays - billions upon billions of dollars in sales. Only an inexperienced would-be trader would have held a SKYM short over the holiday week-end, for all the factors listed above. Incidentally, I want to add that I am in no way related to or familiar with "Auric Goldfinger."