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Strategies & Market Trends : Shorting stocks: Broken stocks - Analysis

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To: Q. who wrote (2471)6/20/2000 1:04:00 AM
From: chester lee  Read Replies (1) of 2506
 
D,

A compelling list.

KROG looks like a good short term short candidate. The biz doesn't seem to be the type that attract daytraders. The float is reasonable 13 million, so any squeeze is unlikely. Additionally, current short is less than 1% of float. While there are growth and value funds represented, there was no index fund and a distinct absence of a bear fund, which would have done quite well.

MXM look ripe to fall further. There is a lot of negativity from current shareholders. biz.yahoo.com The stock is down 10% from that news bit from last month. That said, stocks making new highs tend to go high, and in this case, MXM is making a new low, suggesting a tendency to go lower. My one caution is the low float and the possibility for MXM management to step down. I think the stock will spike if management left the picture, and the low float will exacerbate the move up. These 2 funds are among the top 10.
Vanguard U.S.Stock Index-Vanguard Extended Market Index (19,000 total shares)
Vanguard U.S. Stock Index Fd-Vanguard Small-Cap Index Fd (21,500 total shares)

CNQR is a bit harder to access. Their biz is the type prone to PR blitz's and daytrader run-ups. The shorts already smell death, with current shorts at 8% of the float. Of the top 10 funds, 2 are index funds, which I'm presuming to be sellers come June 30. biz.yahoo.com

Vanguard U.S.Stock Index-Vanguard Extended Market Index (44,300 total shares)
Vanguard U.S. Stock Index Fd-Vanguard Small-Cap Index Fd (41,700 total shares)

Time and capital permitting, I may short all 3 as a basket.

chester
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