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Technology Stocks : American Power Conversion

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To: Phillip Crone who wrote (1930)1/20/1998 2:25:00 PM
From: Gil Gilbertson  Read Replies (1) of 2574
 
Phil.... I agree, shorting stocks can be absolute hell, there is no limit
to the loss if you dont protect yourself, and you aways have to
buy back , either willingly or with force. The most you could ever make is the value of the stock. That doesnt make much sense inasmuch as there are better ways. You can buy a put as you pointed out or if you own the stock, you can sell a deep in the money call or short against the box. The only way a temporary short makes any sense is if you buy some cheap calls above your short to protect yourself. The last few years this market has buried the short players, both amateur and professional... As for Apcc, I am in since August
96 and plan to stay until they either get bought out or become to big
for my growth perimeters. Right now I think the downside is minimal and I will add to my position. I bot a couple shares today and will
be ready if further opportunity presents itself. This asian thing means
nothing long term, as they will still buy tons of electronic equipment in the future if they want to be part of the world and that equipment will
need protection because of their unstable electrical supply...Gil
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