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Strategies & Market Trends : Shorting stocks: Broken stocks - Analysis

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To: Dale Baker who wrote (809)12/27/1997 8:47:00 PM
From: Alan Lee  Read Replies (1) of 2506
 
Just stumbled across this message, thought I recognized your name from the ZITL thread. I shorted SODK at 8 1/8 on 11/25, and have been happy with its performance so far. The news article about their earnings, (0.18) this year instead of 0.48, was a bit hard to interpret, but there was very little positive there, and I don't think the small run up after that had any significance. The one-time charges for accounting changes were for start-up costs for facilities that don't appear to be working out, and the troubles with their south american casinos won't be resolved for many months. I plan to wait for a drop under 6 and dump a few more shares before it goes under 5, unless ZITL becomes too enticing in the meantime :). There is a SODK thread that's been pretty quiet for a while if you want to discuss it there.
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