Sep 8: RMBS wake up after long nap.

R

roclerman

Sep 8: RMBS wake up after long nap.

With take-over speculations as main reason (or short squeeze inspired rally, really) RMBS made today (again) one of his classic squeezes. We have seen a bottom? How long this run will go? Or is another pump and dumper? We can ride it in a correction? Those are the question this kind of situation may bring, lets check out the charts……..

www.roclerman.com

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September 08, 2005 15:33:34 (ET)


(Adds Rambus comment, closing stock price)

SAN FRANCISCO, Sept 8 (Reuters) - Shares of Rambus (RMBS,Trade), which licenses computer memory technology, surged 20 percent on Thursday on heavy volume, which analysts attributed to market speculation about a takeover of the company.

Daniel Amir, an analyst with WR Hambrecht & Co., said messages on Internet chat boards had discussed the possibility of the company being acquired, or reaching a legal settlement with Samsung Electronics Co. Ltd. ((005930.KS)), though he said both possibilities were improbable.

"I think both things are highly unlikely," Amir said.

Linda Ashmore, a spokeswoman for Rambus said: "We don't comment on rumors or speculation."

Asked whether the company plans to issue a news release on Thursday Ashmore said, "At this time not that I'm aware of."

Samsung spokeswoman Chris Goodhart declined immediate comment.

Jon Najarian, founder of insideoptions.com, a Web site specializing in options and equities, said, "We have rumors of takeover speculation from both option floor traders and institutional trading desks.

Shares of the company closed up $2.03, or 20 percent, at $12.33 on Nasdaq, with nearly 14 million shares changing hands.

The speculation sparked interest in options trading in Rambus, especially calls that give the right to buy the company at $12.50 across various months. (Additional reporting by Doris Frankel in Chicago and Duncan Martell in San Francisco)




It looks like a pump and dump but the options were a great scalp today :)
 
My point of view is that this kind of stock when reach some situation like "the last days" in a painful ordered downtrend anything is good thing for a squeeze, how much time we saw it happen and its amazing but it does again.

anyway, i hope tomorrow the stock remains tradeable

regards
 
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