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Technology Stocks : The New QLogic (ANCR) -- Ignore unavailable to you. Want to Upgrade?

To: Greg Hull who wrote (20340)	1/22/1999 6:23:00 PM
From: Mr. Twister	Read Replies (2) \| Respond to of 29386

Greg, In answer to your questions. <Do you expect the Jan short position when it is announced next week to be greater than the Dec position of 1.06M shares?> While the actual short number might not be much higher than the Dec. number, there is reason to believe that the shares are now shorted by professional hedge funds/day traders/ momentum players as opposed to just the Reg-D holders. I make this statement based on the simple fact that a stock can not run from 4-9 in a matter of weeks with no news. Yes, the fundamentals could have changed, in many peoples opinions they have, but when the stock hit its head on the 52-wk high but couldn't push through it was an ideal time to short the stock. 1.) Failed attempt 2.) Newbies buying for news based on rumors or their interpretation of SI or Yahoo!, 3.) Momentum players jumping in due to the Telescan report with ANCR rapidly moving up from #who knows what to #44 in a matter of weeks. With no news, why not short the stock, or better yet, box your position waiting for the story to unfold. <Is it your expectation that the "normal" short selling you have seen lately will more than offset any short covering by the preferred shareholders?> Over the past few trading sessions, yes. Is it enough to offset, I do not know. But how can one assume that the Reg-D shareholders are the only people out there shorting the stock. It has been my observation in the past that so many leaks occurred before a news release that you could trade this stock based on that alone. With new management and tighter lips it has made that virtually impossible. <Wouldn't these sales represent at least short term bearishness?> All things being equal, probably. But I believe that the only bearishness would be from a technical standpoint. You need to remember that there are traders out there that trade on good/bad news/charts/emotions as well as others that trade on fundamentals. Currently, where are the fundamentals with this company? Most of the long-term shareholders own this stock based on future expectations, many of which are just starting to come true. From a technical standpoint, I guess you could say that there is short-term bearishness. It attempted to set a 52-wk high and the increase in volume over the last week has been very noticeable. This is the normal ebb and flow you would expect. A stock can not go up 1/2 or more everyday without catching attention or correcting. For this you have to look no further than the internet stocks. The interesting thing is, this stock has had positive money flow even when it was dropping. I doubt that many internet stocks, as they dropped would show the same pattern. Hope this helps. Andrew