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Strategies & Market Trends : CAVALRY'S SHORT BUSTERS - MAGIC EIGHTBALLS PICKS

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To: Janice Shell who wrote (185)9/11/1998 3:11:00 PM
From: CrazyTrain  Read Replies (4) of 1637
 
Yes, and it is also topical. The topic on this thread is finding companies that have been unfairly hurt buy shorters. Not the merits of shorting.

This next part is actually off topic but as far as shorting goes, I think our market system fails when it allows unlimited shorting. I can understand allowing a certain percentage of the total shares (10% maybe?) so brokers can do business, but there should also be time time limits (like five days) in which a short position must be covered.

The current system is very unfair to small companies trying to grow. When MM's can short all they want (over 4x the outstanding shares) and never have to cover, then the most basic rule of supply and demand is broken. No wonder it is so hard to break out of the pennies. Monty
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