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Strategies & Market Trends : Value Investing

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To: pcyhuang who wrote (28091)9/17/2007 10:11:21 AM
From: MCsweet  Read Replies (3) of 78748
 
Value Investment Selection Criterion,

Pcyhuang, a large short position is an indication of a value trap to me instead of a true value stock. Yes, sometimes the shorts are wrong and you do have potential for a short squeeze, but I'd rather buy something with good long term fundamentals and a large short interest is not indicative of that.

Further, I have found my best returns have occurred with stocks that are unknown or not followed closely, not ones that are widely followed by professional investors (and hated enough that they would short it --- do they know something I don't, often the answer is yes).

I don't have any comments with respect to NFI, except that it is too risky for me to consider either being long or short that one.

MC
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