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.

Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: BWAC who wrote (51525)	9/5/2001 6:14:39 PM
From: Sun Tzu	Respond to of 70976

OT Shorting -- My friend, you and I have a different perspective on the event. To begin with, The shares may close down to 5 tomorrow, leaving me with a 35% loss. But leaving that aside, I do not have the market clout to force selling the stock down (or buying it up). And I don't think anyone has such a power in a liquid market either. Stocks go wherever they want to go regardless of what its holders think. The mantra should be, "The stock doesn't know that you own it. Nor does it care". Manugistic went down because it was trading at 9x revenue in a slowing economy. I spotted the overvaluation combined with favorable market conditions and took advantage of it. Other former holders of the stock benefited by exiting at higher prices, which is what really caused the stock drop. Nor am I buying the stock purely based on its crash. A look at MANU's closest competitor, ITWO, tells me that the market values such companies around 2x revenue. Pricing MANU at 2x my estimation of revenue I came to a fair price target of $8.50. So if the market gives me a 20% discount, given that all the bad news is out and I think we are due for an up day, then I can justify the risk to myself. The bottom line, I neither hype (advertise for) the stocks I own, nor do I try to scare (warn) the longs of the stocks I short. I simply decide where a stock should be and if there is a substantial difference between my assessment and the market's, then I take my position. wish you all the luck, Sun Tzu

To: BWAC who wrote (51525)	9/5/2001 6:20:52 PM
From: Math Junkie	Read Replies (1) \| Respond to of 70976

Do you think shorting is immoral?