Interesting article. I like to short stocks myself. Actually, I find myself going short more than long lately, but that's because it's much easier to find overvalued securities than undervalued in this market. My best short this year was SOLV, from 7 1/8 to 4 1/8 in less than 3 weeks. Don't listen too hard to that poor W. Jack Butler, SOLV was a scam, and they bilked a lot of people out of their money. SOLV trading was suspended earlier this month, and is now vitually worthless. SOLV's symbol is now SOLVQ, and they filed for bankruptcy protection simultaneously with the halt in trading. The point in giving you the details is that just because that fellow cried about the "evil short sellers" last year doesn't mean that his company was being manipulated by them. The stock got to the 30s on absolute hype. All the short arguments were verifiable and true. In this situation we have the opposite situation, as none of Steve's nonsense is verifiable. Each of us has to take a position based on available information, and then re-examine that position over and over. Ultimately, the shorts cannot destroy a sound business, nor can the longs save an insolvent one. If you get scared out by someone who's screen name means "of or relating to rain" (The American Heritage Dictionary, third edition) who posts unmitigated and unverifiable nonsense, then one has only one's self to blame. However, to stay in a position (i. e. SOLV) despite the verifiable warnings of the shorts, is equally insane.
FWIW
Barb |
