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 chartsâ¦â¦.. www.roclerman.com
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
I agree it was a nice cooker in a down market and it closed strong another run-up tomorrow would be great.. Best of luck