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Strategies & Market Trends : Shorting stocks: Broken stocks - Analysis -- Ignore unavailable to you. Want to Upgrade?

To: chester lee who wrote (2483)	10/10/2000 9:07:46 AM
From: Q.	Respond to of 2506

Yes, Chester, I plan to run a screen for broken stocks, perhaps in early November. I'll post it here. There should be plenty of candidates, as you say.

To: chester lee who wrote (2483)	11/20/2000 1:14:19 AM
From: Q.	Read Replies (2) \| Respond to of 2506

I did a screen for stocks that are likely to suffer some tax-loss selling pressure. Most importantly, my criteria were low RS and low % institutional ownership. I was looking for fallen stocks held mainly by individual investors, as these are the ones likely to get hit by tax-loss selling. I also limit myself to stocks with sufficient trading volume. The lower the price of the stock, the better the opportunity. I turned up lots more stocks below $5 than above, so these lists are most useful to those who can short below 5. I avoided stocks below a buck because trading costs are often too high. Firstly, by adding some extra criteria for negative cashflow and avoiding stocks with low multiples of PSR and p/b, I come up with the following: stock price % of float owned by institutions KERA 1.125 14% CCSI 1.68 7% (www.asensio.com has 1998 short sell report, short ratio is now low) BLZN 2 0% (has toxic conversions Dec 7 +) SAFS 2.7 5% SNRS 4 14% (has options) EVCI 5 9% ASFT 5.5 36% (has options) quote.yahoo.com Probably there are lots more good opportunities out there that can be found with different search tools and with different criteria. I produced these stocks using by hand-sorting the output of a couple of search tools (msn.com and tscn.com), and these tools use MarketGuide data which don't include many BB stocks. That's unfortunate because the opportunities are probably a lot better with the BB stocks, many of which have taken a huge beating this year and are held by virtually no institutions.