To: unclewest who wrote (20630 ) 5/22/1999 12:59:00 PM From: sam Read Replies (1) | Respond to
RMBS (the stock) is acting very, very strong. Institutional interest is clearly evident. Indeed, for the past week I have seen only a wisp of sell interest. 5000 share lots here and there -- only two yesterday. Even during the late day sell off, there was no institutional interest to sell. The rest of the week was all buys. 75,000 share blocks and up. That -- in itself -- is no surprise, since those guys need to beat the news or they'll cause panic buying sprees (which is definitely not what they want to do since they are the buyers getting those higher prices). Indeed, these are often the guys buying the downward spikes as many of us frighten out of a sickly stock. Short covering MUST also be taking place. And imo the follow through of the short covering -- from those not institutionally connected -- will continue to lead us higher from here. Probably, well above where we "should be." IMO, Edelstein's $110 price target should have us discounted somewhere in the 90s. And, at least thus far, he appears to be the "ax." Not to say we may not dip back into the 70s. We probably will -- if the market continues to struggle. And we definitely will -- if inflation concerns heat up. That's what the FUD campaign has brought us (instead of struggling to remain at 90, we struggle to remain at 80 or less!) Or, if another "problem" gets the FUD machine going again, we could see another round of painful short selling. And, don't kid yourselves, "problems" will somehow continue to get press coverage until the last major institutional short has finally covered. Remember, the summer is often a weak time for technology. Everyone knows this. That said, the contrarian in me tells me the heavy buying -- this summer -- is far from over. The weakness in the market will be (and is being) used as a subterfuge for heavy, institutional buying. Alas, summer may be quite interesting for the RMBS "cult." JMHO
