Bill Wexler's Profits of DOOM Message Board

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Strategies & Market Trends : Bill Wexler's Profits of DOOM

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To: Bill Wexler who wrote (3539)	11/3/1998 3:55:00 AM
From: Bill Wexler	Read Replies (4) of 4634

Dark days are coming for short-sellers. Thinking about starting new short positions in the next few weeks/months? Don't. Throw out any talk about "overvaluation", P/Es, etc. Short-sellers are facing a much more serious problem: small supply and high demand for equities. I have noticed a marked increase in buy-in activity, a dearth of new offerings and more buybacks and insider purchases. The small and mid-cap market in particular is a powderkeg because it appears that a powerful rally may be forming and short interest remains alarmingly high. This is one of those rare times when I would hesitate to open new short positions in even the most outrageous frauds such as HEB, ZITL and HEPH. Remember in late 1996 when a combination of false rumors, hype and a carefully orchestrated series of buy-ins drove Zitel's market cap to over $1 billion? Don't think for a second that it can't happen again.

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