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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony,

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To: Anthony@Pacific who wrote (46384)11/11/1999 5:33:00 PM
From: Jenna  Read Replies (1) of 122087
 
Question: There are a number of IPO's that usually get one or two days before earnings hold for anticipation which is usually enormous and then I sell and go flat after 25-30% gain in one session (i.e. CYSV, INTI, etc).. Sometimes I sell and then go short but not for these new IPO's, but rather IPO's I'm a little more familiar with like GSPN and AGIL. Now these are not necessarily POSS stocks but nevertheless they make fantastic short candidates purely on the theory of "exhaustion" when the stock has just broken through the highest high and spikes up precariously like the top of a flagpole.

Would you short these stocks THE DAY you sell your long position or would you wait for a small gap up the next day and then short? Would you consider just a 1-2 day short as covered by your shorting techniques? I did not short CYSV or INTI but did 'a paper short'

I have done this on many IPO earnings plays that advanced on anticipation, only to succumb to sell offs after the earnings come out. Does anyone have a srategy that could take advantage of this relatively new phenomenon of IPO's going sky high on anticipation of their first report and then crashing on the news, whether it be good or bad news?
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