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Thanks for the post, they are excellent articles.....let me point out one thing though. Shorting is for traders, not for investors. I agree it is not a very sound long term strategy (except for companies you expect to go bankrupt). However, almost everyone who shorts is a sophisticated trader who is trading for the SHORT term, and trying to maximize his/her return. I myself have 2 seperate accounts. One which holds my investments (some for years) and one for TRADING, in which the value of my account may turn over 10 times in a day, on occasion. This is the account I often short stocks in, for the short term corrections that inevitably come in every stock(no matter how good a company), simply because the market has extended to an extreme. IMHO, DELL offers such an opportunity, and doubly so because it is a momentum stock and a current market darling. It has been my experience that when these stocks reach extremes, they are severe, and when the momentum players leave, the corrections are doubly severe. I have no doubts that such a scenario awaits DELL. The question of course is when? But thats what makes a market, no? I also believe that when the selloff comes DELL will drop to a valuation that is far below where it belongs.......that will provide you long termers a great opportunity to buy. You see, there is money to be made both ways, its the timing that counts,........best of luck, as always....;^) |
