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Strategies & Market Trends : Roger's 1997 Short Picks

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To: vegetarian who wrote (7995)12/8/1997 2:33:00 PM
From: Roger A. Babb  Read Replies (1) of 9285
 
To All: year end effects............

Many investors have large profits in the "high fliers" and do not wish to pay taxes in 1997. That is why I covered most of my shorts before December 1st and expect the market to go higher. There is also a secondary year end effect of short sellers wanting to take losses. In stocks with a recent run up and having large short positions, this can lead to a sharp year end spike up as we saw with Zitel last year. These are great shorting opportunities, but you must be careful about squeezes. I can see potential for spikes in AOL and YHOO this year. Others?
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