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Strategies & Market Trends : Shorting stocks: High fliers

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To: Dale Baker who wrote (632)1/7/1999 1:24:00 PM
From: Q.  Read Replies (2) of 709
 
Dale, re. AMEN's warrant call, it looks like I won't play it because I couldn't get shares. Looks like short interest grew a lot a few weeks ago when the stock soared. (Insiders sold then, too.)

In many previous warrant call situations, I've seen most of the plunge occur in the first day. However, BFLY, which is very similar to AMEN, had several days of decline after they called Dec. 22.

There was one stock last year that some of us shorted because of a warrant call, and it just kept going up. So you can lose at this game.

I assume that the co. mails letters to warrant holders, and in many cases those holders will discover the situation when the get it in their box. I don't know how many days that takes.
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