Shorting stocks: Broken stocks - Analysis Message Board

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

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To: Q. who wrote (1164)	6/16/1998 1:17:00 PM
From: El Matador	Read Replies (1) of 2506

You are correct regarding delisted securities. Your broker or Market Maker has to find another MM willing to sell via the phone. However, since this PAMCE has traded on Instinet today, there will be execution prints on the sell side of Instinet. What you need to do is tell your broker to preference these (anonymous) sellers with bids that you are willing to pay. In other words, since the stock traded around 4 and change, find the seller at 4 1/2 or 4 3/8 and bid him those prices. Usually, they will respond with a counter offer or no interest. You might have to pay up as well. This is where it gets tricky (showing your cards). At least this will give you an indication rather than searching all over the street for interested parties. Question-have you thought about "boxing" your positions? Keep your short and long! When or if the stock bounces up, sell your long (kick out a leg)and then ride it back down to wherever you think it's worth, if it is worth anything. Then again, you could live by my motto, never cover a GTO (Go to Zero)!

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