Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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 : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?

To: KeepItSimple who wrote (88500)	12/25/1999 2:19:00 PM
From: Rob S.	Read Replies (4) \| Respond to of 164684

Good points. What is the problem many longs have with people who short stocks? The value of stocks (even more so these days) is whatever someone thinks it is. People who short a stock think the present valuation has gotten out of sink with where it will be sometime in the future. Some short sellers don't know much, is anything, about the companies they are shorting. They just short stocks based on TA or other methods. Studies have shown however that short sellers as a whole are better informed and timed in their trading than the average. They have to be because the overall propensity for the market is for stocks to move up rather than down. Short sellers help to provide liquidity and often modify high flying expectations in the market. As for stocks being manipulated by short sellers - sure that may happen occasionally in thinly traded stocks but is a tough and dangerous game for wildly popular and actively traded stocks like Amazon. Any long who chides short selling as fundamentally wrong needs to have their heads examined. It is no more wrong to think a stock is over-valued and destined to move down than to think that one is undervalued and destined to move up. Over some length of time "perfect market theory" will resolve the actions of both longs and shorts. Who is right? Whoever who ends up with the fattest bank account.