remain down...only when buying comes in can we begin to see. right now MALL is way oversold with short interest of ~2.7 Mil and any significant developements from the company could trigger a positive scenario otherwise it's going to be a waiting gam.
and once this stock breaks the resistance that you posted earlier, this stock is going to fly big. Shorts will cover, then more longs will jump in. I really don't see how this won't happen, and I think that a lot of serious longs with big interest in this stock feel the same way.
Did anybody thought of the intention for MALL to distribute the UBID shares? When a company spin off another company, they can either distribute it or maintain the ownership as the asset of the company. This will provide them a stronger capital to expand their business or do some other investment (like CMGI). I think the reason for MALL to distribute the share are: 1. They think that they have improved business (in fact they are in the last 2 quarters) and are confident that they will not need additional capital from the UBID shares. 2. They want to totally separated from UBID so that both UBID/MALL can buy/sell products from/to others venders (like AT&T and LU). 3. With the spin-off of UBID, MALL decrease the expense of UBID but may be able to maintain a majority of the sales because UBID buy products from MALL. 4. MALL has a big write-off at the beginning of the year and this will key their tax-rate to be minimal for the rest of 98 and 99.
BTW, how do you know the short interest to be ~2.7 Mil?
I talked to Zacks yesterday, and they told me that there are 110,000 shrs shorted. BTW, Zacks rates MALL a STRONG BUY. They have done a lot of research on this company recently. Of course, a rating from ZACKS doesn't mean everything, but they do know what they are doing.