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Strategies & Market Trends : Roger's 1997 Short Picks

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To: Carl H. Gotsch who wrote (7057)11/15/1997 11:54:00 PM
From: Pancho Villa  Read Replies (1) of 9285
 
CG RE ORG would have to look at fundamentals. The stock split is just a paper transaction. If there are no fundamentals behind it the sotck shoud keep on falling as long as the stock dividend is of same king (same Company) shorts have nothing to worry about, except of course that the herd in the street rushes to buy because of the split. Academicians say this should not be the case. fundamentals dirve stock prices not paper transsactions such as stock dividends. However, some confusion arises because it is usually the high growth companies the ones that declare a stock split to get to a more accessible (i.e., popular sale price). All this BS being said, I never short a stock if a split is coming, even if it is a dog traders are not as smart as Professors Sharpe/fama believe.

Pancho
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