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Strategies & Market Trends : Dave Gore's Trades That Make Sense -- Ignore unavailable to you. Want to Upgrade?

To: Dave Gore who wrote (8156)	6/16/2002 2:49:02 PM
From: Dave Gore	Read Replies (1) \| Respond to of 16631

SCREEN #2a, 2b --- Short Interest and Insider Selling short interest: biz.yahoo.com insider selling: biz.yahoo.com Is the short position greater than 10% of the float? Greater than 20%? The latter is a bit alarming for sure. If so, it is worth noting all the data. If a stock passes #1 and yet it has a high short position, then it bears further examination of the news. Are there rumors that the company is denying vehemently? Are there a lot of shorter comments on Yahoo message boards that are posting emotional scare tactics rather than factual reasons? Do they post often and use lots of CAPITAL LETTERS and SCARY SOUNDING TITLES like "Stock is going to zero"? INSIDER SELLING: 1. Was there a lot of selling by insiders or was it shareholders of funds? 2. Was the selling a significant part of their holdings or a small percentage 3. Was there a legitimate reason for the selling that was expressed (i.e. in ESST's case the company stated that the founding family owned a too high a percentage and was advised by bankers and their Board to sell some of their holdings to reduce their ownership from 40% to 20%). Another legitimate reason might be if management publicly states that they are diversifying their holdings (as long as the amount of stock they are selling is reasonably small each month or quarter so as not to the stock price much). 4. Is there buying going on by insiders that is significant?