"I believe that a person who shorts Iomega at, say, 23, may very well make a profit. There is every chance that IOMG may drop somewhat within the next few weeks. If someone wants to buy at 23 and cover when it hits single digits, I believe they're dreaming. Then there's the chance that a short squeeze will cause them to lose a bundle.
"Someone buying Iomega today might be able to make a profit within three weeks as well, but I don't think they should expect to double their money. I don't believe that they are risking as much as the shorts are, since they can always just hold on during the dips, even adding to their long positions if they choose."
Allen:
Just as the longs can add more to their positions during dips, the shorts can also add more the their positions. If you believe in IOMG fundamentals, go long and hold on. If you don't, either stay out and not make money, or short. Never panic when short (or buy long). Just as you should have patience when long, you should have patience when short. The mid-teens will come sooner (by next week) or later (by next month).
Phil
(Investing is just game. Know the rules. Improve on your skills, go out and make money. Always adapt to new conditions, never be resistant to change.
Bad: "Oh, I have been long on IOMG for years now, I can't short now."
Good: "I have to adapt my thinking in the new changing environment. IOMG fundamentals are different now. I got to move on.") |
