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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: Cosmo Daisey who wrote (28529)	4/27/1999 8:17:00 PM
From: Scott Overholser	Respond to of 152472

<<Short interest doesn't mean that much in the grand view of things. Many traders short a stock that has had a nice run because they think it looks too high and can't go higher.>> i know that most folks short stocks for the wrong reasons. also, many folks will go long a stock for the wrong reasons. it comes down to shorting a stock that's gone too high or buying a stock that's gone really low. the thing that those folks don't remember is that stocks that make new highs tend to keep making new highs and stocks making new lows tend to keep making new lows. i don't know exactly what you mean about short interest not meaning much in the big picture. i suppose mostly you are right - if i get your meaning correctly. however, with a stock like qcom with spectacular fundamentals and short interest being a significant percentage of the float i think it is particularly meaningful. 9 million shares short interest translates into almost 13% of the float. those shorts are non-discretionary buyers. they absolutely must buy at any price. check a few of the historical short squeezes: northern pacific railroad in 1901 is a classic. as i recall, the stock opened around 300 and traded to 1,000 by midday before cooling off. a large short interest in qcom is likely to add a great deal of volatility in the short term (no pun intended :)