Globalstar Telecommunications Limited GSAT Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT

GSAT 69.06

-5.5%

3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: mozerd who wrote (9567)	1/16/2000 2:21:00 PM
From: mozerd	of 29987

Stop the shorts -- a very effective strategy. If a short goes public an effective short strategist will make his/her case once and follow up only when queried. In fact in my experience most successful investors who practice the art of shorting remain very quiet and private since they do not want to draw attention to themselves for many reasons mostly having to do with tax avoidance. In today's Internet environment (access to popular boards like SI) I believe that shorting is heavily practiced by certain investment houses who hire people whose purpose is to cast doubt into peoples minds (by posting many messages challenging the validity of the equity as it pertains to value as well as many associated underlying issues) about their investment causing them to sell. If the shorts can get enough people frightened heavy selling ensues and that will force the price down and the investment houses will have met their objective. The propaganda shorts will not impact an astute investor having done his/her effective stringent Due Diligence (DD) prior to making the investment. New investors should recognize that shorting is for the most part practiced heavily by investment houses that believe that they can exploit the naivety of newcomers who have come into this very dynamic investment climate. So far these unscrupulous people/organizations have had a measure of success because of the very lofty valuations attributed to a broad base of technology (internet) related equities. If the New investor wants to shelter himself or herself from this type of activity --- it?s imperative that you practice Extreme Due Diligence. A good investment decision is just that ? good. If you are a long investor you can deter shorts by instructing your broker to not allow your inventory of equities to be lent out. I would highly recommend that all longs practice this direction. Simply phone your broker or write them a note stating that you forbid having your equities loaned out under any circumstances. Here is an extract that speaks to the subject quite well: Knowing the Rules of the Shorting Game By James J. Cramer Often the owners of stock don't allow their stock to be used by short-sellers. They take their stock out of the borrowing box that each investment firm has. So for example, let's say you own National Gift Wrap.com and you are convinced the fundamentals are strong. But you think the shorts are leaning all over your stock, pressing it down. You may be unwittingly aiding the shorts by allowing your National Gift Wrap.com shares to be let out to short-sellers. It will be lent out if you say nothing because you signed a "hypothecation" agreement when you opened your account, allowing them to lend it out. That's one of the great secrets of Wall Street. It happens automatically unless you say something. If you take National Gift Wrap out of Street name, or request that it can't be borrowed by short-sellers, the brokers have to obey your wishes. Are you an unwitting abettor of the bears on National Gift? Ask yourself that question with any stock you are long. The complete link to this extract is as follows thestreet.com ..DM..

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next