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Technology Stocks : Rambus (RMBS) - Eagle or Penguin -- Ignore unavailable to you. Want to Upgrade?


To: unclewest who wrote (19583)5/3/1999 12:20:00 PM
From: REH  Respond to of 93625
 
viwes.com



To: unclewest who wrote (19583)5/3/1999 12:28:00 PM
From: Sun Tzu  Read Replies (1) | Respond to of 93625
 
Keep in mind that by far most institutions have their shares in a cash account. So it is only the percentage of non-institution float that we care about. For example, if a company has a float of 100 million shares and 80% institutional ownership, you only 19 million shares shorted for a significant chance of a short squeeze.

BTW, you are all welcome to join the Art of Investing thread Subject 22699

Sun Tzu



To: unclewest who wrote (19583)5/3/1999 12:52:00 PM
From: Mark Ivan  Read Replies (3) | Respond to of 93625
 
Unclewest,

>>the idea to put the shares in a cash account was suggested here a coupla days ago. sounds great to me.

Actually, I think this is exactly what you DON'T want. If you truely beleive in the company, I would think you'd want the price to come down so you can buy more shares. The shorts will bring the price down for you and the later buying will raise the price of the stock (that is if the company does not go bankrupt. Then the shorts are the only winners here). Now if you are nervous and looking for a short term bounce to get out of the stock, a grass roots effort for all longs to move to a cash account would generate a nice short squeeze. But trust me, it won't work.

This board sounds just like the CYMER board did for the last two years. It had it's handfull of people that said Cymer was the best thing since sliced bread. It has its eternal, optimist that has been saying the "big move" is coming for 2+ years now. The decline came and then the idea of moving all shares to cash accounts was started. The stock eventually hit 6 and then was a 5 bagger in 3-4 months.
Let RMBS trade out, buy on every 10 pt drop or so, and hold (that is if you believe in the company). The shorts may just be your best friends right now.

Mark

PS. Long with covered calls, if anyone is wondering