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Technology Stocks : IMON - Quoted from Barron's Corporate Reports -- Ignore unavailable to you. Want to Upgrade?

To: Rock_nj who wrote (272)	1/17/1999 10:07:00 AM
From: Louis Cornell	Respond to of 2220

The shorts obviously have good reason to become fanatical bashers of IMON: they were foolish enough to short a $6 stock that closed near its high on monster volume. Their hope is to talk weekend holders into parting with their shares on Tuesday morning. What they haven't figured out is what I call the "wealth effect." When a stock moves up on such strong volume vs. the float, the early holders have sold enough stock to recoup their initial investment, or are in so cheap, they have no fear of MM or shorter's manipulations. Meanwhile the shares bought by smart money (i.e. $4 or under in this case) are comfortable and would sit through any pullback or manipulation. As a result, much fewer shares are available the next trading day for those who didn't get the opportunity to buy. This is simply a case of supply and demand. IMHO, demand will far exceed supply on Tuesday. The shrillness of the shorts is an excellent barometer.