SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Zitel-ZITL What's Happening
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Louis Riley who wrote (2001)12/26/1996 4:08:00 PM
From: Mondoman   of 18263
 
Contingency plan #1: Cry and drink heavily.

But seriously:

I usually don't cover short postions (or sell long positions)
hoping for a better short term price - and then jumping back in
a few days (or hours!) later. This is just a matter
of personal discipline that has worked well for me over the years.

My short positions are currently being covered by stock - not cash.
I don't collateralize at 50% but at well over 100% (another matter
of personal discipline).

Many of my long positions have done extremely well even after some
intermediate profit taking, there was enough equity left
over to pin down my short positions many times over. In
addition I closed out some other shorts that have done very well
for me recently (most notably Xylan and Netmanage). So
despite the beating I have taken in the Y2K group, my margin account
is still healthy. If I absolutely need to hedge I'll buy calls.
Should Zitel cross 55 a share I'll buy enough contracts at 3 and
6 month strikes to cover 110% of my position (this should answer
your question of the 200 point rise scenario).

As far as to why anyone should listen to me?

Because in the long run, I'll be proven correct. The price will
reflect real earnings and cash flow for this company.

Granted, short-selling is extremely risky in this regard. Between
now and the "long run" the stock can double or triple again on
speculation. At least if you go long, buy a great company and the
price tanks 90%, you can't be forced out of your shares. But
if you can't stand the heat...
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News