Advanced Micro Devices Inc (AMD)

[bobs10]

Yah, there are a lot of CVB holders that are just interested in cutting coupons and missed the AMD appreciation by going short. I don't want to look it up, but those guys probably represent about 20m of the shorted shares. That still leaves 33m or so unaccounted for.

What I think is happening is that 1 or 2 of the major shorts are doubling down in a desperate attempt to get back to even. That will only happen if current AMD stockholder sell to these guys. Given that AMD stockholders have had at least six months of wandering in the price desert to sell their shares at current prices, I suspect that not much selling will occur until we get above $17.

What I think is more likely is that before the shorts can cover, at current prices, other big boys will start to see what's happening. Even as a short-term play AMD seems worth buying given the exposure of the shorts.

If I had to guess whose behind all this I would say Bear Sterns. They have tried this before with good success. Maybe we’ll eventually find out, but I doubt it.