Gemmers have never shorted a stock indiscriminately just on I have said so. All I did was portray the financial 'worth' and profitibility of these stocks in comparison with others in the same sector. as I got them from various sources, Bloomberg Research, Intuit Research, Stocksmart Research, First Call Research and MSN money researh. This our form of trading we like to refer to as Techno-Fundamentalist trading. We believe that the highest flyers both to the long and the SHORT side will do the best relative to their earnings, revenues, projected yearly trailing P/E's, Return on Equity, Return on Sales, their ratios.....etc.
Then I peek at their filing myself at Edgar. We call the stock when it is actually exhibited technical confirmation of a short play.. The set was there and the action to be formed as simply a short play. Unlike those that 'short to the death' our gemmers understand quite well that these stocks are not really POS but overblown blimps with unbelieavable multiples, the prices are simply not justifiable. If we were wrong than how come so many of the exact stock we posted for the last few week were cut in half? How come we are now talking about extreme valuation when 8 months ago everyone was complacent and even eager to spend 400 times earnings for a stock. We mostly buy puts over and over again and don't stay with 10 contracts for more than 1 -3 days. Rarely, yes there was RBAK, JNPR, and MUSE that was a little longer.. and small forays of 1 day into TLGD, NEWP and ELNT.
We advise small positions, option calls for $4-7$ usually 10 conract.. When trader get in over their head in boatloads of long or short they are gambling and are not practicing proper trading strategies. We have gotten e-mail from trader that took it upon themselve to load up on long plays that they though had bottomed because the market was so weak and they thought they caught the bottom. A shorter is going to lose his shirt if he just shorts stocks and does not buys puts That's the way I do it, the LEVERAGE is great and you can only lose what you put in to pay for those 5 to 10 contracts |
