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Non-Tech : Bill Wexler's Dog Pound
REFR 1.610-14.8%Dec 2 3:59 PM EST

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To: Bill Wexler who wrote (9640)5/1/2003 6:32:42 AM
From: fut_trade   of 10293
 
"Companies that engaged in these activities tended to see their stock prices suffer considerably afterwards--on average, such companies experienced a 42% underperformance against the market in the 3 years following their challenging instance. One hypothesis that accounts for this behavior is that short sellers are largely correct in their assessment about a company's prospects, at least in cases where management challenges the short sellers vigorously.1"

srv3.polls.scd.yahoo.com

1 Lamont, Owen, "Go Down Fighting: Short Sellers vs. Firms." Working Paper, University of Chicago Graduate School of Business, January 2003. Lamont recounts an incident where a short seller was shouted down at a shareholder meeting by management resorting to a "prolonged and very loud coughing fit." Another incident involved reported death threats against short sellers (p. 17).

gsb-www.uchicago.edu
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