To Short Sellers Only
Short sellers, in some circles, I am known as the king of short sellers. I've shorted the best of 'em. Check past posts of mine in ZITL in January, IOM in Summer 96, AOL in Fall 96, VVUS, CFON, & XCIT this Spring. I've played 'em all and watched 'tumble. I still make longs shudder when I show up on some boards. I even have my own board here at the SI (do a search for Chi-X and you'll find it).
I am not short GERON and do not recommend shorting it right now. Please look at the charts for all of the above stocks. They did not just pop on only one day and go down the next. They popped, ran for around a week or more, then after those several days of running up, they began to fall. I follow the 3-4 day rule. On the third or fourth day of a runup, then and only then do I even begin to consider shorting a stock. On the first day if you short a stock, it's like lying down on the railroad tracks and getting ran over.
Also, consider the shares outstanding. I hate shorting stocks with a low outstanding shares. Geron only has 10 million shares outstanding. Then consider the float which is the number of shares available for trading. Geron only has 2 million shares float. The total shares traded on Friday was over 12 million. This means that the float traded hands 6 times. This is really scary.
Also, for the kicker, I've always laughed at stocks I've shorted (like IOM, ZITL, AOL, VVUS, XCIT, etc...) and asked investors this question to spook 'em:
"Ya' know, it's not like they discovered the cure for cancer..."
Now I look at GERON. Here is a company that has made a breakthrough that may lead to the development of a drug that may indeed do just that. To me, this is a short sellers' nightmare. Scary...
Cheers,
Chi-X hath Spoken!
CEO
Chi International
members.aol.com
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