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Strategies & Market Trends : Shorting stocks: Mechanical aspects

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To: Q. who wrote (63)9/6/1998 11:43:00 AM
From: Vol  Read Replies (1) of 172
 
John G, Re: mechanical shorting

Ultimately, he and I figured out a very easy way to narrow down the VL #5 list. On the
page of the VL booklet where they list the #5 timeliness stocks, they also listed the
dividend yield and p/e. By picking only the stocks that had zero yield and NMF p/e, we
found that we got only the the VL stocks with the shakiest cash situations. This was
easy, because it required only looking at a single page of a VL booklet.

That guy made a paper portfolio, and followed it for several months (much as you did)
and he got quite a good return, something like 10% per month, on the shorts. It should
be easy to backtest this scheme if one had the old VL reports.


10% a month!! compounded that is 1.1**12 or 213% per year!!! is that for real?? why the heck arent' you and he still doing it. you could retire to the Caymans in just a few years. sounds too good to be true, but i'll look into it.

btw, what is "NMF" p/e? i assume it means negative 12 mo trailing earnings.

vol
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