william,
i have never shorted a stock, don't know much about it, but i am wondering what sort of upside you see in these trades.
if amat has a p/e of 17 and has been trading in a range of 40-50, more or less, for 2 months, and now sits in the middle of that range, is this really a low risk bet?
klac, with a p/e of 20, seems to make more sense as it had a previous low of ~26 and now sits at 40. i know i have warned that p/e 20 stocks can still get cut in half, but it seems a long shot.
ge, with its 36 p/e looks somewhat vulnerable, but since the co. never misses and tends to carry a premium in the mkt. it would seem you have to be betting on a chancy event, an earnings warning?, to make this one play.
i realize you have to borrow the shares to short, and some probably aren't avail., but what keeps ntap, or brcd, jnpr or cien from being more likely shorts?
bear with me. it would appear that i frequently don't even understand the kind of trading i do on a regular basis, much less something like this.
thanks, don |
