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Biotech / Medical : Biotech Short Candidates

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To: tom pope who wrote (769)12/30/2005 6:24:25 AM
From: enrico99  Read Replies (2) of 897
 
We all agree I guess:

- BCRX IS a risky short
- the risk of bad avian flu news is low but not zero
- in the improbable event of bad avian flu news BCRX could double or triple again.

Other risky shorts include or have included:

- any biotech stock and any company that could potentially announce a new drug
- energy or resource stocks that may announce the discovery of a new well or mine
- alternative energy stocks which have supposedly invented the energy source of tomorrow
- technological stocks that claim they have the solution to tomorrow's computer memory or processor or data storage problems
- homeland security stocks after 9/11...

However, after shorting overvalued companies in all these areas, I still find it worth it.

The price to pay is sometimes to see the stock double yet one more time before going to zero or much lower.

But in the end most of them go to zero or at least down enough to make decent money on average.

Trouble is, if you wait too long you also miss a lot on the down side.
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