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Non-Tech : Iomega Thread without Iomega -- Ignore unavailable to you. Want to Upgrade?

To: Ron Dior who wrote (7236)	2/12/1999 9:31:00 AM
From: Tom Carroll	Read Replies (1) \| Respond to of 10072

RE: Short action Ron, I'm not sure we've seen the last of the shorts by any means. The first time I bought Iomega stock, before the early 1996 run-up, it was at a price that is now below fifty cents per share after all the splits. There was very considerable shorting at those price levels, before it went to about $28 in today's prices, killing some of the more spectacular shorters in the squeeze. My guess, though, is that there are still vintage shorters out there who want the price to go to zero or, failing that, to stay as close to zero as they can push it for as long as possible. When the price was under $4 a while back, there were still shorters on this thread trashing away at the company. You're right about most of the shorters, though, the ones who shorted more recently. But I'm guessing that there are still some very, very long-term shorters out there. There was a time when I suspect they were shorting at the end of trading almost every day to drive down the closing price, but I think that they're now too stunned by the recent successes and new product announcements to sustain that kind of behavior. They got a little window of opportunity with the announcement that 99Q1 would be flat earnings, but other than that, there's no good FUD opportunity at the moment, leaving those long-term shorters in a position to affect the price only by getting caught in a short squeeze. <g> The longer they can delay the rise in this stock's price, the lower the constant-dollar cost to them of cashing out their short positions, because of the time value of money. As time goes on, though, their effect on the stock's short-term price swings is diminishing. Correct me if I'm wrong, all you experts on shorting. Cheers, Tom (long IOM)