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Strategies & Market Trends : Pump's daily trading recs, emphasis on short selling -- Ignore unavailable to you. Want to Upgrade?

To: Don Pueblo who wrote (3478)	7/7/2001 11:31:42 PM
From: Harbie	Read Replies (1) \| Respond to of 6873

i have not found a firm that is willing to loan me any shares on the bb - have you? would be interested to contact them...even my canadian friends who daytrade pennies are quite restricted on what they can and can't short...( has not been as easy as just clicking on the "short" button on any bb that's running ) tia

To: Don Pueblo who wrote (3478)	7/8/2001 6:58:50 AM
From: xaver17	Respond to of 6873

If you want to short BB stocks, just try it I shorted about 5 different BB stocks last year on ETrade, above $ 5.-. If you do it, the stock should have good volume as it is more likely to get a buy-in. But now I stay away from BB, plenty of other short candidates around. I also shorted PALM right after the IPO, tried every day and was successful in the second week, also with ETrade. Xaver

To: Don Pueblo who wrote (3478)	7/8/2001 7:21:02 AM
From: Kirk Messmer	Read Replies (2) \| Respond to of 6873

Shorting Under $5 The Chicken explained this better than I have in several attempts, but he made a technical error. A short trade is made in the margin account, not the cash account, because it is not a cash trade. You're borrowing shares. You need collateral. So the clearing house can seize it and break even when the nightmare "unlimited upside risk" [snicker] occurs. Collateral means margin account. Also, a stock does not have to be marginable to short and $3 is not a limit for shorting. I recently shorted MTNT at 1.64 in a merger arbitrage play (thanks again Michail). The key is whether your broker's clearing house has shares to lend. Also, at the two brokers I've used --one who clears through U.S. Clearing (Fleet) and CSFB who clears through Pershing -- if you short under 5 bucks or if it goes under 5 bucks you still have to maintain $5 per share in account equity. So it ties up capital and borrowing power and under $3 may not be worth it.