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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: horsegirl48 who wrote (33239)	3/13/2001 11:57:10 AM
From: edamo	Respond to of 65232

hg48..."shorting" why short a profitable company with a high pe, when there are so many unprofitable companies with no pe or very high pe, that don't understand that a business is in business to make money.... the momentum or "because" method of shorting by "nouveau investors", although temporarily in vogue and profitable, is no different then the rabid buying at any price...the end results are loss of capital, whenever the real fundamentals of a business are not taken into account... a classic short, which is usually long term, is in a company such as amazon, that although hyped and acclaimed, had no chance of turning real profits proportionate to their market cap.... today you can see the "fallen angels", once high price and extreme pe, struggling to stay green....whereas the better business models, even in tech, are a little more convincing to the upside.... a bit more downside to the market...but the time to short was when all thought to go long...watch what closes flat to up today on decent volume, and have begun a basing.....they will eventually lead and hold on to the lead, slowly but surely.... rules haven't changed as most thought...just a bunch of new players sitting at the table who are discovering by participating what the real rules are now, and have been.... good luck, short or long, preserve capital, keep tight stops on trades...no "easy money" anymore... ed a.