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Biotech / Medical : HEB, Hemispherx Biopharma (AMEX)NEW

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To: Mama Bear who wrote (557)11/4/1998 7:43:00 PM
From: Marty  Read Replies (1) of 857
 
Regarding your post:
"There is statistical proof that heavily shorted stocks get that way for a reason, and are more likely to go down than up. You really should re-examine your above belief, because it just isn't so.

BTW, there are a lot of very patient shorts"
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How do you know it isn't so? There are reasons, valid and not, that stocks get heavy short positions ... same as why stocks sell at their current levels. The price at any one moment of time is the total world consensus of the stock's value. I don't know of any statistical proof that they are more likely to go down than up... question is how much is "heavily" as I suppose it could always get heavier. I still think that they represent a better source of buy trades at a sooner point than longs represent for eventual sale trades.

There may well be some patient shorts but I don't think that there are a lot of them and I maintain that their average holding period is a fraction of the average long holding period. I used to make my living as a stockbroker and that was my personal and pretty extensive experience, as well as of all the other brokers in my office at that time.

Wonder where there might be some definitive statistics or studies on these questions.
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