SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Pastimes : Clown-Free Zone... sorry, no clowns allowed
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Earlie who wrote (172843)6/14/2002 11:55:51 PM
From: Haim R. Branisteanu  Read Replies (1) of 436258
 
Early your explanation makes a lot of sense and it is true under the conditions you describe. I think that it may be very relevant to a acquisitive company like Tyco or any other company loaded with debt which can be serviced in prosperous times.

The risk you are running IMHO is that WS likes to bust stocks who are heavy shorted by spreading false rumors and "almost done deal for new financing or IPO of subsidiary". (happen to LU, HWP, T etc)

As a result of those manipulation a $10 to $15 stock can move easy up $3 to $5 or 20% to 30% which can be quite distressing, and preservation of capital rule dictates to cover and cut short your losses, and there I see the issue of risk/reward ration as in most cases those type of situations are difficult to hedge by options.

Other classic examples abounded in the tech sector last year.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News