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 : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: Dave who wrote (52264)	10/26/2000 5:11:32 PM
From: SC	Respond to of 74651

Well, I wouldn't recommend shorting anything as it carries an open ended risk that is impossible to quantify (i.e. it is gambling with money you might not be able to come up with). There was a stock that was mis-identified by one of the financial channels on television over thanksgiving weekend last year. I don't remember the name but it was similar to the name of a bigger more financially secure company. I don't know, but I believe the number of outstanding shares in the smaller company was relatively small. It was fascinating to watch the stock triple over the course of the shortened trading session the Friday after thanksgiving only to come crashing down the following Monday. As you have astutely observed the folks who shorted this too early were wiped out by margin calls and had difficulty buying back shares on the way up. The really saavy money with the deep pockets probably ran the price up before getting out and possibly shorting after the apex in price. The early shorts with limited capital got squeezed by the smarter, well capitalized and probably later shorts. As you have pointed out, sometimes the smartest thing to do is to not take any position at all. Sort of like an unlimited ante poker game--the guy with the most money can make everybody else fold by raising the ante and still win with a losing hand. Steve