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.

Strategies & Market Trends : Investing for the January Effect 2000 -- Ignore unavailable to you. Want to Upgrade?

To: Mad2 who wrote (42)	12/26/1999 7:40:00 PM
From: GBT	Read Replies (1) \| Respond to of 109

Mad2 I'm still looking into PDX, but I found this on Yahoo and thought it was interesting. messages.yahoo.com Even with the investigation, people are still having babies and this company is still making good money for a $7 stock. One of these days the shorts will have to cover, and I hope to be there. I would like to buy in the low 6's or high 5's, but I will purchase if this stock starts to run anytime soon.

To: Mad2 who wrote (42)	12/26/1999 11:22:00 PM
From: Q.	Respond to of 109

re. your question about short-sellers behaviour and how it relates to year-end covering: The timing is different from what many people might think. Shorts can cover in the last couple of days of 1999 and not recognize a capital gain until tax year 2000. That's because the IRS considers the settlement day, and not the trade day, to be the pertinent date for short covering. It's unlike the situation for closing a position on the long side, where it is the trade date that counts. Thus, shortsellers have an incentive to delay covering a position that is being held as a paper gain until Dec. 30 or whichever trade date corresponds to the first settlement day in the next year. You might think that this could result in some upward pressure on the price of a heavily shorted stock a few days before Jan. 1. However, I'm unaware of any evidence that such an effect is tangible.