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Strategies & Market Trends : Bill Wexler's Profits of DOOM -- Ignore unavailable to you. Want to Upgrade?

To: david james who wrote (4321)	1/30/1999 11:51:00 PM
From: Bill Wexler	Read Replies (1) \| Respond to of 4634

<<I don't think the short squeeze is the only reason the stock will go up, but I do think it is one of the things that will attract new buyers.>> Except for gamblers and speculators...no one buys on a short squeeze - mainly because it's very easy to turn into a short squeeze participant into a victim when the stock collapses so quickly you can't get out. <<I also wouldn't argue that the company is without problems. Despite a big increase in revenues and what appears to be a big earnings increase, the company does have some serious cash flow problems.>> Hmmm. Makes me wonder why anyone would want to buy the stock then. <<Asensio hammered the stock into the single digits.>> I don't mean to be insulting, and from your profile you seem like an intelligent man, but I can tell from this statement that you don't understand the mechanics stock trading, short selling, etc. Asensio didn't do anything to the stock except issue a press release outlining Able's fraud. The stock was hammered because it was sold off by investors running for the exits. <<Although I followed it, I didn't buy until I saw that Fidelity bought 1 mill shares.>> One of the things that makes me laugh the most when reading the posts of investors or touts in weak, worthless or fraudulent companies - second only to the cries of "short squeeze" - is the claim that institutional following somehow makes a stock a more attractive investment. It doesn't. Great businesses and/or great value make a stock an attractive investment. Fidelity funds are littered with many stocks that have gone to zero. <<They are expected to have $500 mill in revs in 1999. Lets be conservative and call that just $300 mill>> Let's be realistic and call that negligible. <<Now if you were shorting MFNX, I might go along with you.>> Besides overvaluation (which can be one of but not only reason to short), why on Earth would I short MFNX? Bottom line: ABTE is a stock promotion fraud. This isn't a theory or something made up out of thin air to persecute the saints who run ABTE, it is a fact documented by a long paper trail. I sincerely hope you make money; however, eventually and inevitably the stock will crash. I've had nearly identical debates with investors in CYBG, ZITL, ENML, KRY, CCSI, etc. etc. etc. and in the end the fraud eventually bubbled to the surface and the stocks crashed.