I'm not sure what you mean by "on their lows", but some of the best shorts can be done on stocks that are at least near recent lows. SOLV is my best ROE this year, and I didn't short it until 7 1/8. Hadn't been that low since March of 96, on it's way up to 38. By the time I found SOLV it was obvious it was only a matter of time. Avant! is a great short here IMO. I don't know if this rule applies to legitimate concerns, but with arguably criminal management and an obvious death spiral, they are relatively safe low maintenence shorts. The percentage of profit is the same on a stock from 5 to 1 as from 100 to 20. While not glamorous, grinding out better than 100% ROE appeals to me. When it's done in less than 2 years, it is most remarkable. At today's close, I am near 100% ROE on Avant. And honestly, I am more concerned with winning the hat in the contest than worried about covering that one. If it goes back to 25 I'll thank my lucky ducks and sell some more. I know we all want to top tick Yahoo!, but that's a lot more stressful, and much more difficult.
Just my thoughts,
Barb |
