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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: peter michaelson who wrote (8226)	9/12/1999 4:00:00 PM
From: jeffbas	Respond to of 78817

Peter, interesting post on shortselling. I think the idea of a cooperative team effort to research candidates is a good idea. (It seems that Uniprime is delisted as I can't even find it -- 100% in 2 months is great!) However, from the point of view of full disclosure, anthony@pacific appears to have been thrown off Silicon Investor for something which evidently violated their view of Terms of Use, with respect to his postings on NTOP, if my memory serves me right. Anyone who shorted it when he was posting got killed. I will repeat my view of shortselling. You don't short either strong charts or strong fundamentals unless you like to gamble. You short weak charts combined with weak fundamentals. I guess I would make an exception for scams like Uniprime. The following chart is instructive: quote.yahoo.com Xicor had both strong fundamentals and a strong chart from early 1995 to late 1996 and would have been a poor short. The fundamentals started turning south in late 1996 and the chart confirmed it, but it still was not a great short until late 1997. This company is in the notoriously cyclical semiconductor industry and even then it took more than a year for the stock to totally roll over. Most companies are less cyclical. (By the way, both the fundamentals and chart are strong now.)